The RIBA champions better buildings,communities and the environmentthrough architecture and our members

Trustees’ Repor t and Financial Statements 2012

Angela Brady, RIBA President

‘ As the world watched entranced, our architectural mastery was on show at the London 2012 Olympics and Paralympics’

Cover — London Olympic Stadium. Populous. Shortlisted for the 2012 RIBA Stirling Prize. Olympic Delivery Authority and London Organising Committee of the Olympic Games, winner of the RIBA Client of the Year. Image: Morley von Sternberg.

Objectives, strategic priorities and vision From the RIBA President From the Chief Executive

Strategic priorities 1 Stimulating demand for architecture 2 Meeting the needs of the 21st Century 3 Influencing to improve the built environment 4 The hub for knowledge and innovation RIBA Enterprises

Where our money comes from and where it gets spent Financial review Structure, governance and management Independent auditors’ report Financial statements Legal and administrative details Public benefit and supporters

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Contents

RIBA Trustees’ Report and Financial Statements 2012

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11%

The RIBA in 2012Some of our achievements

images now available at ribapix.com, the online gallery

rise in Library use

71,0 00people took part in the Love Architecture festival

21,000

visitors see the exhibition, A Place to Call Home

new individual members

30,000

2,000

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submissions to RIBA Awards

raised from member subscriptions

mraised for Shelter since Architect in the House began

m £6.9

673

followers @RIBA

hours of time given free by members

41,500

40,000

hours of CPD Core Curriculum training across England and Wales

12,500

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Objectives Strategic priorities and vision

The objectives of the RIBA, as set out in its Charter, are the Advancement of Architecture and the promotion of the acquiring of knowledge of the Arts and Sciences connected therewith. In modern day terms this could be better expressed as ‘the RIBA champions better buildings, communities and the environment through architecture and our members’.

Our vision is that by 2017, the RIBA will be recognised as the leading authority on architecture and the built environment. In particular, we will be known for excellence in the promotion of architecture, setting standards, stimulating innovation, sharing knowledge and demonstrating the economic, social and environmental benefits of good architecture.

Annual general meetingThe RIBA Annual General Meeting will be held at 12.45pm on Wednesday 18 September 2013 at 66 Portland Place, London W1B 1AD. Chartered Members may download the AGM voting paper at architecture.com/agmvotingpaper. Voting papers may also be obtained by telephoning the Constitutional Affairs Secretary on +44 (0)20 7307 3883.

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We will stimulate demand for architecture that delivers economic, social and environmental value.See page 21.

See page 27.

See page 33.

See page 41.

Meeting the needs of the 21st Century

Influencing to improve the built environment

The hub for knowledge and innovation

Clients

Members

Leadership

Knowledge, innovation and culture

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Stimulating demand for architecture

We will work with our members to transform the practice of architecture to meet the opportunities and needs of the 21st century and to support successful practice now.

We will influence, lobby and lead to inspire improvements in the built environment nationally, locally and internationally.

We will be the hub for knowledge, innovation, research and debate on the built environment.

The RIBA seeks to achieve its vision through the following strategic priorities:

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‘ 2012 gave us a magnificent stage from which to proclaim the creativity and ingenuity of our profession’

Angela Brady, RIBA PresidentThe RIBA: supporting, encouraging, inspiring

Opposite — Olympic Masterplan/Legacy Masterplan and Architecture: AECOM/Allies and Morrison. In partnership with Buro Happold, Capita Symonds, Foreign Office Architects, LDA Hargreaves and Populous. Winner, RIBA National Award 2013. Image: Allies and Morrison.

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The RIBA: supporting, encouraging, inspiringAngela Brady, RIBA President

Last year gave us a magnificent stage from which to proclaim the creativity and ingenuity of our profession. As the world watched entranced, our architectural mastery was on show at the London 2012 Olympics and Paralympics – the most memorable, innovative and sustainable Games to date. Yet when we should have been shouting to great acclaim the achievements of those who created these amazing buildings and structures, they were prevented by a restrictive protocol agreement from promoting their work – and denied the recognition that they truly deserved.

Indignation prompted me, together with the Institution of Structural Engineers and New London Architecture, to campaign for an end to marketing restrictions and to commission a film celebrating these unsung heroes. In September 2012 I interviewed 54 architects, engineers, landscape architects, designers and clients at the Olympic Park for our Designing for Champions film. After much lobbying and publicity to ‘drop

the ban’, it was finally lifted in January 2013, six months after the Games had started. However, we succeeded in capturing the spirit of London 2012 while in motion and with all the buildings still in place.

The film short was launched at Ecobuild in March 2013, and then shown at MIPIM in Cannes and Ajman in the UAE. It will enjoy a much wider audience around the world as part of UK Trade and Investment’s (UKTI) GREAT campaign. We have persuaded UKTI that architecture merits a prominent place in its campaign to promote Britain abroad as one of the best places to visit, study, work and do business. We also intend to capture on film the transformation of the Olympic Park into a lasting legacy for the benefit of all.

We are working closely with UKTI and have now held two conferences with them where RIBA members have been able to explore how best to exploit opportunities to work overseas. Helping members to connect and work around the world, and building on the RIBA’s already strong worldwide reputation, are at

Much of the debate around architecture in 2012 was coloured by the continuing recession, lack of work and poor procurement processes: some of the very real challenges that architects and the wider construction industry face today. I have been very vocal in calling on the government to get the economy growing again by investing in housing, public buildings, the green economy and infrastructure projects.

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the heart of our new international strategy. As well as supporting some 6,000 overseas RIBA members, we are forging closer relationships with universities, practices, architecture institutions and – importantly – potential clients.

There is enormous scope to share and exchange knowledge – particularly on sustainable and low-carbon design – with universities and other architecture professionals abroad. Last year I contributed to a conference on sustainable cities in Ho Chi Minh City in Vietnam and we have since signed a memorandum of understanding with their school of architecture, setting out how we can work together. We are working on a similar initiative with the school of architecture in Hanoi, and also pursuing a closer relationship with the profession in Brazil, Libya and Spain.

In Asia, we consolidated our presence with the launch of the Hong Kong Chapter in September 2012. This will be a springboard for reinforcing existing relationships, developing new ones and promoting architecture throughout

the region, with obvious benefits for some 800 RIBA members in Hong Kong and mainland China, such as access to the RIBA CPD Core Curriculum and, in 2013, the RIBA Part 3 examination. The Hong Kong Chapter joins well established chapters in both the USA and the Gulf.

A busy year of activity internationally, but my top priority closer to home has been to tackle the cumbersome and costly public procurement process that has held the construction industry back for far too long. More efficient, sustainable and equitable procurement will give us better buildings and a better environment – and contribute to economic growth.

In 2011 I set up the RIBA Procurement Reform Group, drawing on expertise from across the industry, and in May last year we published Building Ladders of Opportunity: How reforming construction procurement can drive growth in the UK economy – a solid foundation for continuing, concerted work on procurement.

We had three key recommendations for government: to look for the best ways to drive efficiencies and savings; to ensure that the process results in sustainable buildings; and to create a competitive market that does not disadvantage UK design talent.

We are now working with the government to influence procurement reform – with some early evidence of success. And at the European level, the signs are encouraging as revision of the EU public procurement directive progresses. With European partners, including the Royal Institute of the Architects of Ireland (RIAI) and Architectuur Lokaal in the Netherlands, we are exploring an online portal on procurement – a great opportunity to promote better procurement practice among architects. We also want to support clients in making the right decisions when commissioning buildings: we have already published guidance on design competitions, to be followed by Client Conversations, with insights into what makes a successful project outcome.

‘More efficient, sustainable and equitable procurement will give us better buildings and a better environment – and contribute to economic growth’

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The RIBA: supporting, encouraging, inspiringAngela Brady, RIBA President

The RIBA is here to support, encourage and inspire the widest talent pool. If an unfair public procurement process has blocked some UK architects and practices, other obstacles are holding back women in architecture. I have campaigned for diversity in our profession for many years and we now have an RIBA Equality and Diversity Champion. Jane Duncan, RIBA Vice President Practice and Profession, will support the work that we are already doing through Architects for Change and also steer a two-year investigation into the causes, problems and remedies to inequality in architecture and the wider construction industry.

There is still much to do, but we are making steady progress towards our long-term goals. So, when I pass the presidential baton to Stephen Hodder in September this year, I know that I can rest easy that the marathon will continue and that it will be in safe hands.

Right — SunBloc by HelioMet team, London Metropolitan University, winner of the 2012 RIBA President’s Silver Medal (for best design project at Part 2).

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The RIBA’s global reach

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‘Throughout 2012, we brought architecture and architects closer to the public’

Harry Rich, Chief ExecutiveInnovation and impact

Opposite — Kirk Balk Community College, Barnsley. Allford Hall Monoghan Morris. Winner, RIBA Award. Image: Tim Soar.

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Innovation and impactHarry Rich, Chief Executive

The buildings, places and spaces around us powerfully influence our lives, our economy and our environment. In 2012 we redoubled our work to help politicians, policy-makers, clients and the public recognise the benefits of effective design.

This review shows how we lived up to the ambitions of our five-year strategy, Leading Architecture. Our planning and delivery have benefited immensely from having a clear roadmap and I am always encouraged when I meet members all over the country who endorse the direction and clarity of Leading Architecture.

Early in 2012 we scored a significant success in ensuring that design quality and design review were given proper weight within the National Planning Policy Framework (NPPF). This sets up the potential for better homes, towns and cities, though we remain concerned about effective implementation of the policy. Our new guidance on running effective design review panels will help local authorities, clients and their design teams, and local communities to reap the benefits promised by the NPPF.

Our HomeWise campaign for more and better quality homes has strongly influenced the debate around the UK’s housing crisis. The government has listened to the Future Homes Commission, which we set up to find ways to build more new homes that live up to the needs of residents. Its recommendations for fundamental changes to how we build, fund and market homes and,

at the same time, drive economic growth were seized upon by all political parties and attracted unprecedented attention in the national and local media.

Throughout 2012 we brought architecture and architects closer to the public. Our nationwide Love Architecture festival and other events and activities around the country, helped many thousands of people see how architecture improves their lives – in their homes, schools, hospitals, city centres and open spaces.

We have successfully continued our drive to improve what we do and how we do it, so that we achieve as much impact as possible. Following a review of how we share information with members and the public, we will launch a brand new website later this year that will engage users in the joys and benefits of architecture through its rich and exciting content.

We are looking hard at new ways to support a resilient profession and I am happy to report that the RIBA was strengthened by gaining more than 2,000 new individual members and 200 new RIBA Chartered Practices during 2012. We are helping our members to work around the world and the high-quality training contained in the RIBA CPD Core Curriculum

was in increasing demand and is now easily accessible throughout England and Wales.

We brought the whole construction industry on board to revise the RIBA Plan of Work. The new edition published this year responds to new ways of working, transforms the process map and, for the first time, integrates BIM and sustainability.

Our Dream Builders series with the BBC World Service, recorded in front of standing-room-only audiences at Portland Place, is now taking world-leading architects and architecture to a new global audience. The new permanent gallery at 66 Portland Place will allow us to showcase even more of one of the world’s finest architectural collections and will attract thousands to the RIBA as a major cultural venue when it opens in 2014.

In the 1930s, in the teeth of the great depression, our predecessors had the confidence and foresight to build our iconic building at 66 Portland Place. It is this spirit that we draw on when we innovate and invest in the future. So, as well as increased policy influence, campaigning, a new website and gallery, I am delighted that during 2013 we will also be investing in other major projects that will set

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‘ We are investing in major projects that will set us up to deliver effectively for many years to come’

Below — Body Building family workshop, children collaborating to create a new skyline using the shape of their bodies in a free workshop at 66 Portland Place, London. Image: Wilson Yau.

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Top left — Visitor ideas blackboard from A Place to Call Home exhibition at 66 Portland Place. Opposite top — Dyson Centre for Neonatal Care, Bath. Winner, RIBA Award. Image: Fotohaus-Craig Auckland. Bottom — Hackney Marshes Centre, London. Stanton Williams. Winner, RIBA Award. Image: David Grandorge.

Innovation and impactHarry Rich, Chief Executive

us up to deliver effectively for many years to come, including:

• developing our membership structure to attract and retain world-class members;

• initiating a research programme to develop indicators of the economic and social value of architecture;

• reviewing and updating our client-facing work to provide coherent client support;

• developing a programme to improve diversity across the profession;

• opening an architecture centre in Liverpool;

• delivering RIBA Part 3 and CPD in Hong Kong as part of our support for international members.

I am proud and fortunate to work alongside a team of RIBA colleagues all over the UK whose intelligence, creativity, professionalism and commitment constantly impress me. Many thanks to them and our members for making sure that we help to unleash the power of architecture to strengthen our society, economy and environment.

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‘We will stimulate demand for architecture that delivers economic, social and environmental value’

RIBA Strategic Priority 1: ClientsStimulating demand for architecture

Opposite — The Florence Institute, Liverpool. Restoration by Purcell. Winner, RIBA North West Conservation Award 2013. Image: The Florrie. 1

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It is even more important for clients to invest in good design in straitened economic times. Short-term, short-sighted savings will, over a building’s lifetime, end up costing more, and leave us all the poorer in so many ways.

By investing in effective design, clients get the best value from their buildings and over the past year the RIBA has continued to encourage and support them to commission inspiring and sustainable buildings.

RIBA competitions come up with the best solutions

A design competition is often where the best solution lies. A competitive process, driven though a competition, drives up quality, finds innovative sustainable design solutions, and provides opportunities for new and emerging talent. Both public and private clients get to choose from the best and most exciting design options, whatever the type and size of the project.

A total of 57 per cent of projects built after RIBA competitions between 2000 and 2011 went on to win architectural awards. For example, The Hepworth Wakefield, designed by David Chipperfield Architects and shortlisted for the

2012 Stirling Prize, started life as an RIBA competition in 2003.

We ran 14 competitions for major projects in 2012 which attracted very strong interest from architects both in the UK and abroad. They included public buildings and spaces that will make a big difference to the quality of the environment and everyday lives.

In the City of York, for example, a design competition was chosen to explore how the Guildhall and riverside area – an important part of the city’s cultural and civic life – could be reconfigured to bring the greatest benefit to the city and its residents. Getting the design right will bring jobs and growth to the local economy, create attractive public space to connect the river to the city, and knit the old and the new together. Rob Loader Architects won the competition and ideas for regenerating this historic part of the city are now being taken forward.

How do we build for a growing ageing population? Does the ‘baby boomer’ generation want something different from what has in the past been conceived as ‘retirement accommodation’? An RIBA competition – Re-imagine Ageing – for a leading retirement developer called for insightful, new ideas for the kinds of homes and environment

Good design matters because it brings social, economic and environmental benefits. Well-designed homes and neighbourhoods make our lives healthier, happier and safer and our communities stronger; students learn better and achieve more in inspiring buildings; recovery times improve in hospitals designed to meet the needs of patients and staff; and businesses profit from greener, well considered premises.

Stimulating demand for architecture1

Opposite — The Hepworth Wakefield. David Chipperfield Architects. Shortlisted for the 2012 RIBA Stirling Prize. Image: Hufton+Crow.

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that meet the needs and aspirations of older people. Five emerging and up-and-coming practices were shortlisted, their design proposals impressing with a mixture of creativity and pragmatism.

From homes to wide open spaces: ambitious, long-term plans are under way to restore the natural landscape of the Great Fen in East Anglia, one of the most important wildlife projects in Europe. The competition for the Great Fen visitor centre to be at its heart in Cambridgeshire inspired enormous interest from architects both at home and abroad. The quality and diversity of the 201 submissions was so high that the judging panel decided to increase the shortlist. A final decision will be made later in 2013.

Competitions are not only good for clients – they are also good for architects. These three competitions followed an open and anonymous first stage, giving practices of all sizes and experience the chance of being selected for ambitious and exciting projects.

When public sector clients get the best design, everyone, including the taxpayer, benefits. South West London and St George’s Mental Health Trust opted for a competition to transform its Springfield site in

Stimulating demand for architecture1

Wandsworth into a 21st century mental health facility. The winning design by CF Møller was selected from an exceptionally strong shortlist and the client was delighted: ‘their designs show innovation and quality of the highest standard’.

Advice is at hand

We are encouraging clients to have the confidence to procure their buildings through competitions while making it easier for them. Our guide Design Competitions: Guidance for Clients published in 2012 shows just how much more clients can expect from a competition and gives them all the information and advice they need to plan and run a successful competition, from starting with a good brief right through to judging. The guide has done what it set out to do: competitions have become an increasingly attractive option.

Clients know that they will have an RIBA architect adviser to hand, one of a dedicated team of RIBA Chartered Architects with a wealth of experience, expertise and practical advice, who will work alongside them throughout the competition – from the initial idea right through to completion.

Celebrating great clients

The RIBA Client of the Year award shines a light on those inspired clients who put high-quality design first. The 2012 award went to the Olympic Delivery Authority (ODA) for the spectacular venues seen by millions across the world – the biggest ever audience for great architecture – and with a legacy for decades to come. All 52 practices, large and small, selected by the ODA were chosen through competitions and the RIBA played a part. The designs for the Velodrome by Hopkins Architects – a stunning example of successful and sustainable design – and the Central Park Bridge by Heneghan Peng were selected through RIBA competitions.

Closer to home

We do not only help big clients on big projects. At a very different scale, we are helping people to make the most of their homes. This could be creating an open-plan living space, designing an extension or improving energy efficiency. In 2012 the annual Architect in the House scheme had one of its most successful years yet. All 3,288 homeowners who joined up had

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The Hepworth Wakefield – shortlisted for the 2012 RIBA Stirling Prize – is a resounding success, attracting thousands of visitors and adding to Yorkshire’s stature as a destination for great art.In 2003 Wakefield Council had decided to use an RIBA design competition for a new museum to display rarely seen works by Barbara Hepworth. ‘The competition genuinely opened up the opportunity to an international field to design a building for an important collection. David Chipperfield Architects were chosen from a very strong shortlist – we wouldn’t have had that calibre without the support of the RIBA.’

A rigorous selection process was guided by an RIBA architect adviser, helping the judges assess quality and make a well informed decision. In 2011 Gordon Watson, now Chief Executive of the Lakeland Arts Trust, again turned to the RIBA. ‘After the success of The Hepworth Wakefield, an RIBA competition was an obvious route for the new Windermere Steamboat Museum. We’re delighted with the result: Carmody Groarke’s fresh and distinctive design is a very worthy winner.’

Gordon Watson, former Project Director, The Hepworth Wakefield, and now Chief Executive, Lakeland Arts Trust

• Develop our programme of client services to stimulate demand for architecture that delivers economic, social and environmental value

• Run 20 expertly led competitions, enabling clients to commission good and inspirational architecture that delivers value

• Complete the first phase of research to produce data and examples that demonstrate the value that architecture delivers to clients and the economy

• Continue to support Shelter, the housing and homelessness charity, with Architect in the House, which introduces the public to our members who help them unlock their home’s potential

RIBA Competitions, trusted to deliver outstanding designs

Main aims for 2013

an hour-long consultation with a local RIBA Chartered Architect on how to improve their homes, in return for a donation to Shelter. Over the 17 years since Architect in the House began, it has raised over £1.7 million for Shelter to help homeless and badly housed families.

‘With the current state of the housing market, we’re staying in our homes for longer, but life doesn’t stand still and simple changes to your home can make a big difference’, says George Clarke, RIBA Chartered Architect and Shelter ambassador.

It is now even easier to join up for Architect in the House. We are matching RIBA Chartered Architects to local homeowners every two weeks throughout the registration period, so more and more people will benefit from the advice of architects – and Shelter will also gain.

Opposite — Hastings Pier regeneration, an RIBA Competitions project, secured HLF funding in 2012. Design team led by dRMM. Rendering: dRMM.

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‘We will work with our members to transform the practice of architecture to meet the opportunities and needs of the 21st century and support successful practice now’

RIBA Strategic Priority 2: MembersMeeting the needs of the 21st Century

Opposite — The Triangle, Swindon. Glenn Howells Architects. Winner, RIBA Award. Image: Paul Rafferty. 2

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Pushing for better, leaner, greener procurement

The way that we procure buildings determines whether or not we get quality and value. A process that puts short-term costs above all else too often delivers poor design quality. And an overly bureaucratic public procurement system makes bidding prohibitive for many practices, with clients missing out on some of the brightest design talent as a result.

Things need to change and in May 2012 we published Building Ladders of Opportunity: How reforming construction can drive growth in the UK economy. This sets out recommendations for achieving a fairer, greener and more efficient public procurement process that is less expensive to clients.

We are now working with the government and through the Construction Industry Council to find the best ways to drive efficiencies and savings; ensure that buildings are sustainable; and create a competitive market. Together with the Architects Council of Europe and the UK Cabinet Office, we have also been lobbying for amendments to the revised EU public procurement directive.

Supporting the profession

We are supporting a profession badly hit by the economic downturn. We are enabling our members to have the skills and expertise to adapt to a changing world and also helping them work around the world. A fall in the number of RIBA Chartered Members might have been expected, but the reverse was true. 2012 saw more than 2,000 new individual members – far outstripping our target for the year – and the overall number of Chartered Practices remained stable.

The job market for RIBA Part 2 graduates was particularly tough and unpredictable. So, we teamed up with experts from within and outside the profession to put together original and thought-provoking advice for Associate Members to help them take the next step in their careers. RIBA Perspectives is a series of fact sheets giving the views of top professionals, such as Jamie Oliver’s brand guru, on finding a job; managing finance; marketing; business planning; and selling creative ideas. Vantage Point gives the insights of 11 established British architects, including Joanna van Heyningen, Lee Polisano and Ken Shuttleworth, on the different paths that can lead to success. And more inspiration comes from filmed interviews in Talking Heads.

It was a difficult year for many people as the recession hit harder but we put everything into helping our members and practices remain resilient. A strong architecture profession is central to creating the high-quality buildings and spaces that bring social and economic benefits and make the best use of shrinking public funds.

Meeting the needs of the 21st Century2

Above — Chez Cup Bar in the former Regent Palace Hotel, now Quadrant 3, London. Dixon Jones. Winner, RIBA National Award 2013. Image: Dan Dubowitz.Opposite top left — Completed project from Architect in the House. Calum Smith. Image: Suzanne Stevenson.Opposite top right — Grodians, Lerwick, Scotland. Richard Gibson Architects. Winner, RIAS Award, Scotland. Image: RGA civicspace.Opposite bottom left — The Hub, Coventry University. Hawkins Brown. Winner, RIBA Regional Award, West Midlands. Image: Tim CrockerOpposite bottom right — Garsington Opera Pavilion, Buckinghamshire. Robin Snell Architects. Winner, RIBA Award. Image: Mike Hoban.

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Giving members what they need

We are now looking creatively at how we can best help all categories of membership. Do we have the right structures and the right services in place? In our largest ever consultation, we asked members for their views on what RIBA membership offers them. From there we’ll have a comprehensive picture of the profession and can work out how to shape our structures and services to best support the practice of architecture.

We know from the enthusiastic take up in 2012 of the radically new CPD Core Curriculum that we have got that right. The simplified CPD programme, delivered through the RIBA CPD Providers Network and RIBA Regions, reflects changing policy and legislation, for example localism and the opportunities it brings, as well as professional qualifications and training. Mastering BIM, for example, features prominently. All members now have equal access to high-quality CPD, wherever they live, to help build their business and practice, gain new skills and attract

new work and clients. The Core Curriculum was delivered across England and Wales: 10 sessions in 10 different venues totalled some 12,500 hours of training. Sessions were often oversubscribed and we added additional training to meet demand. An advanced CPD course in conservation was particularly popular. With a successful CPD programme, public and client confidence in the profession remains high.

Our Guerrilla Tactics conference once again drew in large numbers of members from small practices. Exploring ‘New Frontiers’, it looked at working with local communities; getting to grips with the latest technology such as BIM; making the most of social and online media; and practices punching above their weight in the international arena. The line-up included Steve Quartermain, Chief Planning Officer at the Department for Communities and Local Government (CLG), and Charles Phillips, Deputy Director at the Department of Energy and Climate Change (DECC).

For conferences in 2013 we shall be looking again at

working internationally and other opportunities such as BIM and design review, which comes into sharper focus with the National Planning Policy Framework (NPPF).

RIBA Plan of Work 2013

We are confidently looking to the future and 2012 saw a comprehensive review of the RIBA Plan of Work, the definitive model for the building design and construction process which has, for 50 years, served architects and the wider construction industry well, and exerted significant influence internationally.

The RIBA brought the whole industry on board, with the Construction Industry Council, to devise a new edition of the Plan of Work, with a unified set of work stages. Published in May, the RIBA Plan of Work 2013 ensures alignment of best practice from all the specialists within an integrated construction team. Clients can expect better, more sustainable buildings, delivered more efficiently.

The new RIBA Plan of Work will integrate both sustainability

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and BIM but, in the meantime, we published the BIM Overlay to the RIBA Plan of Work which cut through any confusion and gave practical advice on working in a BIM environment and making the most of its opportunities.

Building in sustainability and encouraging innovation

The drive towards a sustainable built environment is a major responsibility for architects and also an opportunity to use their professional skills for good. The RIBA Guide to Sustainability in Practice was launched at Ecobuild, the world’s largest event for sustainable design, in March 2012. It argues the strong business case for sustainability; shows the benefits for clients; and explains the 10 steps that architects can take to build sustainability into their daily practice.

UK architects are among the most talented and innovative in the world. They are contributing significantly to advances in the science and technology associated with architecture and the built environment – and not least sustainable design. In May 2012 we

published The UK Research and Development Tax Credit Scheme – a guide for architects to encourage them to take advantage of generous UK tax incentives for research and development – and push the boundaries still further.

Supporting architecture students

Students are struggling with high tuition fees and growing debt and many talented young people are deterred from pursuing architecture as a career. In June 2012, RIBA President Angela Brady hosted a fund-raising party to help architecture students in need.

We said in 2012 that we would launch an office-based RIBA Part 2 examination as an alternative route to qualification. With changes to the EU Professional Qualifications Directive, and a bleaker economic landscape, we have decided instead to undertake a longer-term re-evaluation of the entire structure of architecture education in the UK. We are setting up an expert review to consider issues around value and the relationship between academia and the profession.

The annual RIBA President’s

Medals Student Awards have opened doors to architecture schools and students around the world. 2012 also saw the launch of Polyark III where 12 schools of architecture from the UK and abroad, including Peru, Romania, Egypt and Vietnam, are working together on a collective design brief for port architecture.

Opening up opportunities abroad

We have redoubled activity to help our members connect and work around the world, especially as prospects at home remain unpredictable. To help them compete for work, for example, we are compiling better market intelligence in key overseas markets, such as China.

We have an increasingly close partnership with UK Trade and Investment (UKTI). At the first ‘Work internationally’ conference held with UKTI in March 2012, architects and practices were able to meet UKTI commercial officers from all regions of the world. Delegates heard how best to win work – and get paid. A second conference in March 2013 – ‘Wish you were here’ – looked more

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• Launch RIBA Plan of Work 2013 that responds to new ways of working, integrates BIM and sustainability and enables clients to commission well designed and sustainable buildings, more efficiently and effectively

• Develop our membership structure to attract and retain world-class members and to ensure that it supports the needs of a thriving profession

• Continue to offer financial support to students in hardship

• Work with members to increase diversity in the architecture profession

• Develop our international work to facilitate international practice by RIBA members, support members living overseas and help UK practices thrive by opening doors in emerging markets

• Deliver the CPD core curriculum nationally to help our members stay at the forefront of practice

• Review architectural education so that it meets the opportunities and needs of the 21st century

• Maintain UK validated courses and increase international validated courses

• Deliver RIBA Part 3 and CPD in Hong Kong as part of our support for international members

• Develop tools and support services, including business support services for RIBA Chartered Practices

closely at where to find business opportunities, such as China, Brazil, Turkey and UAE, and how to exploit them.

In September 2012 the RIBA Chapter in Hong Kong was launched, joining well established and thriving chapters in the Gulf and elsewhere. With some 800 members in Hong Kong and mainland China, the new chapter will increase opportunities for CPD, build on existing relationships, forge new ones and promote architecture throughout the region. A facility to undertake the RIBA Part 3 examination in Hong Kong is planned for 2013 – the first opportunity for architects to qualify outside the UK.

Main aims for 2013

Since it was founded in 1834 the RIBA has evolved to become not only the voice of the profession in the UK but also – with a global network of RIBA-validated schools of architecture and its presidents’ ambassadorial work – a respected name worldwide. Its members too have designed many of the world’s most iconic buildings, celebrated through the RIBA Stirling and Lubetkin Prizes and international awards.UK Trade and Investment (UKTI) – which is working to ensure the success of UK-based businesses in international markets and to encourage investment by

overseas companies in the UK – sees the RIBA as a vital partner. ‘The integrity of the RIBA brand is acknowledged around the world and the respect that it commands has helped UKTI to raise the profile of this country’s design excellence and to win new work for UK plc.Working with UKTI, the RIBA is supporting an increasing number of UK practices to expand into overseas markets and to stay resilient during tough economic times at home.’

Sandra Martin, Creative Services Team, UKTI

The RIBA, a vital partner for UKTI

Opposite left — Novium Gallery, Chichester. Keith Williams Architects. Image: David Grandorge.Opposite middle — Conversion of former chapel into Caistor Arts and Heritage Centre. Jonathan Hendry Architects. Winner, RIBA Award. Image: David GrandorgeOpposite right — Guangzhou International Finance Centre. Wilkinson Eyre Architects. Winner, 2012 RIBA Lubetkin Prize. Image: Jonathan Leijonhufvud.Above — RIBA Boyd Auger Scholar 2012 Jo Ashbridge at work on her project The Role of Earth Architecture and Construction within a Disaster Risk Reduction Framework for Areas at Risk of Flooding Across Bangladesh. The RIBA offers a range of prizes, scholarships and bursaries that support and reward students, graduates, academics and practitioners. Image: Jo Ashbridge.

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‘We will influence, lobby and lead to inspire improvements in the built environment nationally, locally and internationally’

RIBA Strategic Priority 3: LeadershipInfluencing to improve the built environment

Opposite — Sainsbury Laboratory, Cambridge. Stanton Williams. Winner, 2012 RIBA Stirling Prize. Image: Hufton+Crow

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Design entrenched in the planning system

One of the most far-reaching results of our influence was strong policy on design embedded throughout the government’s new National Planning Policy Framework (NPPF). We now have national planning policy that for the first time recognises design as a core planning principle and, crucially, encourages local authorities to use design review panels and take their views into account when considering planning applications. This significantly strengthens the process to improve the quality of schemes. When done well, design review is efficient and often saves time and money.

We have already been sharing our members’ experience and expertise in design review: in 2012 we ran two regional design review panels, one in the North West – through Places Matter! – and the other in the North East. To meet the ambitions of the NPPF, we joined forces with the CABE team at the Design Council, the Landscape Institute and the Royal Town Planning Institute to update design review guidance. Design Review: Principles and Practice, published in February 2013, sets out the 10 principles for running successful design review panels of all types. It will help local authorities, design teams and their clients, as well as local communities, to get the most from design review and create better places.

To build on our success with the NPPF, we are contributing to Lord Taylor’s review of planning guidance, and in September 2012 we were quick off the mark in taking a firm stand against the government’s plans to remove the need for planning permission for some house and building extensions. We commissioned a YouGov poll which showed that over 50 per cent of those canvassed thought that this would damage the design quality of their neighbourhood. On behalf of the consumer, we called for a rethink.

Giving the consumer a voice

The consumer is also at the centre of HomeWise, our national campaign to improve the quality and quantity of new homes, which gathered further momentum in 2012. The exhibition A Place to call home – where we live and why charted 200 years of the British home and drew in crowds not just in London but also at Mann Island in Liverpool and at Grand Designs Live in Birmingham. At a conservative estimate, some 30,000 people visited the exhibition. Media coverage was impressive, including live broadcasts from the exhibition by BBC Breakfast and an interview with guest curator Sarah Beeny and RIBA Chief Executive Harry Rich on ITV’s Alan Titchmarsh Show.

We developed the arguments in the Case for Space report published in 2011 with detailed consumer

Creating long-lasting sustainable homes and thriving communities – and delivering value to the taxpayer – will only happen if we insist on effective design. Our lobbying of government and policy makers in 2012 scored some very significant successes.

Influencing to improve the built environment3

Opposite left — Manifesto for London, calling for better design in the capital, published at the time of the 2012 London Mayoral elections.Opposite right — The Tower of Love, Blackpool. dRMM Architects. Winner, RIBA Award. Image: Alex de Rijke.

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research with Ipsos MORI into what people want and need in new homes. The results – The way we live now – provided compelling evidence of the consumer’s expectations, perceptions and needs and bolstered our case for better new housing with the government, as we continue to work closely with the Department for Communities and Local Government (CLG) on its Housing Standards Review.

A housing revolution?

In 2011 we set up the independent Future Homes Commission, headed by former CBI Director General Sir John Banham, to provide answers to the long-standing challenge of building more and better homes. Its report – Building the Homes and Communities Britain Needs – was ground-breaking. It concluded that a housing revolution was possible and could lead to economic growth. 300,000 desperately needed extra homes could be built every year in

the UK without an extra penny of government spending or debt.

It called for a radical overhaul of the way we build homes, with local authorities taking the lead; finance coming from the largest local authority pension funds; new homes being designed to meet current and future needs; and for a housing market better serving the consumer.

The impact was immediate and game-changing. Media coverage was unprecedented, from major national daily newspapers, BBC Radio 4’s Today programme and Radio 5live, to local radio stations and press across the country, and support came from across the political spectrum. Housing Minister Mark Prisk was quick to respond: ‘We’re determined to pull out all the stops to get Britain building and today’s report from the Future Homes Commission raises innovative and interesting ideas which we will consider carefully.’ The report was also debated in the House of Lords. By March 2013 Local Government Minister Lewis

Brandon had announced that local authorities could, from 1 April 2013, invest twice as much of their pension fund assets – up to 30 per cent – into building more homes and infrastructure.

Getting everyone talking about architecture

Away from Westminster, RIBA members are getting people involved with architecture and showing them how it can improve their everyday lives.

From Falmouth to Fleetwood, West Wittering to Wolverhampton, people came together with architects for the Love Architecture Festival 2012. More than 21,000 people took part in over 350 events organised by RIBA members across England and Wales. It was fun, interesting and exciting and showed architecture in a new light to new audiences.

RIBA Yorkshire, for example, teamed up with Leeds Brewery and DLA Design to organise city-centre

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architecture and pub trails, with a special Love Architecture Festival beer and beer mats with QR codes for smart phones.

In St Ives, Cornwall, a quirky puppet show revealed the secrets and mysteries of some of the town’s most famous buildings – with an architectural challenge to be enjoyed over ice creams. And specially created Big Bike Rides were organised around the country. Cyclists on the Bath to Bristol Railway Path were entertained along the way by those involved in projects that have added to the built and natural environment, and the Contemporary Architecture in Cambridge tour discovered work by internationally renowned as well as local architects.

The RIBA Hub in Manchester – with its exhibition space, café and bookshop – also gives us a fantastic opportunity to raise the profile of

Influencing to improve the built environment3

architecture in a very visible way on the Manchester high street. It makes it much easier for our members to draw people in to architecture, including schoolchildren and students, and supports members with a whole range of events and resources, such as CPD.

RIBA awards bring local, national and international attention to the best of new architecture. With a simpler online entry process, 2012’s awards attracted more entries – and resulted in more winners. Some 1,200 people participated in events around England and Wales to announce and celebrate the winning buildings. The 50 RIBA Awards for national projects ranged from a house inspired by ‘seaside vernacular’ to the London 2012 Olympic Stadium, and included 10 major public arts buildings such as Bath’s Holborne Museum and The Hepworth Wakefield.

The RIBA Stirling Prize was awarded to the Sainsbury Laboratory at the University of Cambridge by Stanton Williams at a prestigious event at Manchester Central, with The Observer as a new national media partner. The RIBA Stirling Prize, the RIBA Manser Medal, the Royal Gold Medal – awarded in 2012 to Herman Hertzberger – and the annual RIBA Fellowships all raised the profile of great architecture, the people behind it and the difference that it makes to people’s lives.

And that’s the true test for architecture: how it has improved the lives of those using it. It could be a hospital, a school, an arts building or even, on a much larger scale, a regenerated city centre. As part of a review of all our awards, we shall be looking at a new award to recognise those projects that have brought the greatest benefits.

Left — Love Architecture Festival beer and pub trail, Leeds.Opposite — A Love Architecture event at Nottingham Castle. Nottinghamshire and Derbyshire Society of Architects.

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Widening the audience

At 66 Portland Place, ambitious plans to bring architecture to an even wider public audience moved ahead. Designs by architects Carmody Groarke for a new permanent gallery on the ground floor were approved. When it opens in 2014, we shall be able to mount major exhibitions, including rarely seen items, such as original drawings, photographs and models from our collections.

It is not only in London that our collections will get a greater public airing. At Mann Island – a prime location on Liverpool’s waterfront – we shall also soon have a new gallery space with museum conditions which will enable us to make our collections available to audiences from across the north west of the country.

We joined in the spirit of the London 2012 Olympics and Paralympics and trumpeted the part that great architecture played

in the Games’ success. Design Stories: The Architecture behind 2012 was part of the official London 2012 Festival and showed through models, films and images how the venues, including the Olympic Stadium, Aquatics Centre and Velodrome, were designed.

Warming to the theme, After the Party: the Legacy of Celebration, used our collections to look at the lasting social and urban impact of buildings created to celebrate a particular moment in time.

Tackling the big questions

In 2012 we also looked to the future. Through our think-tank Building Futures, we asked thought-provoking, sometimes controversial, questions. Four packed debates in 2012 looked at questions such as the future of English cities and the impact of a growing ageing population. We also began a broader investigation into the challenges and opportunities of

an older demographic: how should our towns and cities adapt to meet the needs, interests and aspirations of older people?

We also stimulated debate through a series of 17 think pieces on the future of the urban environment which were read online by more than 8,000 people. Leading thinkers – including Renzo Piano and Dr Ken Yeang – shared personal views on tall buildings, play in the city, and the future of architectural education.

How can we better tackle the complex process of planning successful, sustainable communities? Can we be ‘smarter’ about this? With sustainability, technology and built environment experts we have been looking at how to use technology to compile, store and share data so that local authorities and architects have all the information they need for sustainable design and planning.

Influencing to improve the built environment3

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• Deliver Love Architecture 2013, a major national architecture festival that introduces many first-timers to architecture

• Continue the BBC World Service series Dream Builders, taking world-leading architects and architecture to a global audience

• Continue to champion good design to policy-makers, by representing the profession to government; raise the profile of good design and its benefits to local authorities, clients, developers and design teams

• Publish findings from our research into the ageing population, so that those planning and designing are better informed

• Organise public exhibitions and talks that celebrate and promote the benefits that good architecture brings to society, the economy and the environment

• Develop our awards programme so that it ever-better communicates the value of architecture

• Champion the voice of the consumer through our HomeWise campaign, which empowers the public to demand better when choosing a home

Main aims for 2013

Opposite — Peabody Avenue, Pimlico, London. Haworth Tompkins. Winner, RIBA Award.Image: Philip Vile.

Not many people have the chance to hear five of today’s greatest architects talk about what has shaped their careers and their buildings. But in 2012 the RIBA and the BBC World Service came together to create the series Dream Builders which has captured unique interviews with Santiago Calatrava, Norman Foster, Daniel Libeskind, Zaha Hadid and Renzo Piano for broadcast to a worldwide audience in June 2013. ‘Without the prestige with which the RIBA is held internationally we would

not have attracted guests of such exceptional calibre. This shows how combining the strengths of two organisations can create something of great value that would be extremely hard to achieve alone.The RIBA is a wonderful partner…and the experience and insight of its staff have contributed greatly to the quality of what we created. We look forward to working with the RIBA on another successful series of Dream Builders in 2014.’

Charlie Taylor, Producer, BBC

The BBC and RIBA create Dream Builders

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‘We will be the hub for knowledge, innovation, research and debate on the built environment’

RIBA Strategic Priority 4: Knowledge, innovation and cultureThe hub for knowledge and innovation

Opposite — Detail from a mural, created for the Design Stories exhibition at the RIBA. Design: Dan Bissonnet. 4

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Partnerships with others for Last Tuesdays brought fresh events to new audiences. With the Twentieth Century Society, for example, we shone a light on Dorothy Annan’s colourful 1960s telecommunications murals on London’s Farringdon Street.

Well over half of those who came to Last Tuesdays were not from the architecture profession. Their response to what the evening had to offer was overwhelmingly positive – ‘amazingly good’, ‘great idea and great feel’ – and 99 per cent would be happy to recommend Last Tuesdays to a friend. Last Tuesdays sent out a clear message that the RIBA is not only for architects, but for everyone.

Getting the message right – and to the right people

In 2012 we looked at how we can do better in communicating to our audiences. To understand what matters most to those we want to reach, we undertook extensive audience research with RIBA members, the general public, other built environment professionals and policy makers, including government.

One of the most obvious ways in which we shall be doing things differently is our website,

architecture.com. Work is well under way for designing and building a new website and when it goes live in 2013 we expect it to be the online destination for architecture.

Showcasing our collections

The RIBA is home to one of the world’s most important architecture collections – an extraordinary resource that we share with the public, the profession, students and teachers at all levels of education.

We brought some fascinating archive material to the public for the first time in our exhibitions at the Victoria and Albert Museum. Albertopolis used previously unseen exhibits from RIBA, V&A and other collections to chart the development of South Kensington and the Exhibition Road Cultural Quarter from 1851 to the present day. Those who missed the exhibition can take advantage of an online version, complete with a podcast walking tour.

The dramatic transformation of London’s King’s Cross station – part of everyday life for hundreds of thousands of Londoners – was brought to life through models, drawings, photographs and films in King’s Cross: Regenerating a London landmark. Original material spanning the life of the project from

In 2012, on the final Tuesday evening of each month, we enticed even more people through the doors of 66 Portland Place to enjoy and learn about architecture. More than 300 members of the public came to each Last Tuesday for an exciting and eclectic mix of exhibitions, films, talks and debates, book launches and building tours – all combined with good food, drink and music in a stunning Art Deco setting.

The hub for knowledge and innovation4

Top — RIBA Liverpool city walking tour.Bottom —Model from Kings’s Cross: Regenerating a London Landmark, V&A+RIBA Architecture Gallery at the V&A. John McAslan + Partners.Opposite — Body Building family workshop. An event at 66 Portland Place where families used the collections and their bodies to learn more about buildings. Image: Wilson Yau.

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lead architect and masterplanner John McAslan and Partners greatly added to the exhibition’s success.

Over 9,000 people visited the British Architectural Library in 2012, an 11 per cent increase over the previous year. Late Tuesday evening opening certainly contributed to this, as did displays in the library that tied in to other activities in the building, such as the very popular High Society exhibition which drew on our collections to illustrate high-rise, post-war housing as part of the RIBA Home Season.

Our archive of architectural photography is one of the finest in the world and we owe a huge debt to the dedication and expertise of Robert Elwall, Assistant Director of the Photographs Collection, who died in 2012. In recognition of his extraordinary contribution over 30 years, we renamed the collection the Robert Elwall Photographs Collection in October 2012 and curated a special exhibition to show just how much he had brought to the British Architectural Library and its reputation worldwide.

Over 10,000 images were added to the online RIBApix database in 2012 – exceeding our target. The public now has access to more than 71,000 images, including by some of the world’s greatest architectural photographers.

Our new library out-store based in south west London was opened to the public by appointment, making it much easier for visitors to consult off-site collections, including large, rare or fragile items that were previously difficult to share.

We are now applying the FRS30 reporting standard for charities so that our balance sheet reflects the value of our heritage assets – currently standing at some £260 million.

A source of inspiration – and fun

A diverse and imaginative programme of activities – at 66 Portland Place and the RIBA Study Rooms at the V&A – encouraged people of all ages to learn more about architecture through the British Architectural Library’s collections of books, archive materials, drawings and photographs.

As part of the Home Season, a family drop-in workshop, Your House, Your Home, brought parents and children to 66 Portland Place to draw inspiration from the RIBA’s collections and imagine how homes might look in the future. During the London Festival of Architecture in June 2012, Sketch in the City at the V&A saw families adding their own drawings to a collage of London after delving into our collection. And getting out and about, Run, jump, shoot provided a hands-on way to experience and capture London’s architecture through photography. Using the RIBA’s photographic archives to spark ideas, people then tried their own hand at shooting on location.

Just how valuable the RIBA’s collections are as an educational resource is increasingly appreciated by teachers from primary, secondary and higher education, as well as art and architecture librarians from around the country. Some 3,700 people took part in events organised by the British Architectural Library in 2012, a leap of 110 per cent over the previous year.

We are continuing to explore with potential partners ways to make our and other major collections accessible online to an international audience – an idea that we have called Architecture Global.

Easier for all to play a part

Many value highly what the RIBA has to offer, including our collections, and want to make a contribution. In 2012 we began to put in place ways to make it much easier for them to do that. We have already launched a new RIBA individual patron scheme and this will be followed by a corporate patron scheme later in 2013. Together, they will give anyone, whether an individual or an organisation, the opportunity to support us at whatever level of contribution best suits them and enjoy attractive benefits.

RIBA membership fees cover only part of our costs and these new initiatives, by bringing together a solid group of supporters, will go a long way in helping us promote architecture and serve all who want to use the RIBA’s intellectual capital, especially the British Architectural Library.

The hub for knowledge and innovation4

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• Launch a new website to promote the benefits of good architecture so that architecture.com becomes the online destination for architecture

• Build the gallery at 66 Portland Place to showcase our world-class collections and offer great exhibitions to a wider audience from February 2014

• Open an architecture centre in Liverpool for exhibitions and activities that demonstrate the value of architecture

• Add 7,000 images to RIBApix

• Attract at least 1,750 participants in a vibrant programme of collections-based outreach

• Make our collections and expertise available to users of our enquiry services and study rooms at the RIBA and V&A

Main aims for 2013

Sir Denys Lasdun, one of the leading architects of the 1960s, died in 2002, leaving an outstanding archive of architectural models, papers, drawings, photographs, film and audio. Offering exceptional insight into his work, and into the society, culture and politics of the second half of the 20th century, Lasdun fervently wanted his archive to be a resource for future generations – especially students – and believed that it should stay in Britain with the RIBA British Architectural Library as its custodian. Supporting his intentions, the Lasdun family have supported the RIBA’s project with enthusiasm.Preservation of the archive and access to it are key for anyone who wishes to understand the architectural politics as well as architectural development of the post-war period. In projects such as the Royal College of Physicians

(1958-64), the University of East Anglia (1963-9), and the National Theatre (1964-76), Lasdun dealt with issues to do with healthcare, the expansion in higher education and Government support for the arts.Cataloguing approximately 11,000 drawings, 25,000 photographs, 506 boxes of files, and 64 models and much audio-visual material took five years and was completed in autumn 2012, allowing access to the whole archive. A world-wide audience will be able to see items from the archive and considerable background information with the launch in summer 2014 of Lasdun Online, hosted on the RIBA’s website www.architecture.com The site will offer free access to a fully comprehensive illustrated list of Lasdun’s projects both built and unbuilt, accompanied by analytical essays.

Major archive entrusted to the RIBA

Opposite top — Sketch in the City drop-in drawing workshop, part of the Big Draw campaign, participants add to a collage of London using images from the RIBA’s collection to inspire their own drawings. Image: Wilson Yau.Opposite bottom — Visitors to the Villa Tugendhat display in the Library at the RIBA headquarters. Image: Wilson Yau.Top — Pompidou Centre, Paris (1977), designed by Piano and Rogers. Photograph by Martin Charles, one of Britain’s most renowned architectural photographers, who died in 2012 bequesting his entire archive of approximately 20,000 photographs to the Robert Elwall Photographs Collection.Bottom — Design for a villa: elevation. c.1785. Thomas Hardwick (1752-1829). RIBA Library. From a volume of designs for houses, churches and public buildings. Purchased from descendants of the architect with support from the V&A Purchase Grant Fund and the Art Fund, 2012.

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World-leading provider of information to architects and other professionals in the construction industry

RIBA Enterprises

Opposite — The RIBA Village at Ecobuild 2013. Image: Duncan Smith Photography and Video.

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RIBA Enterprises products – tools, documentation, publications and standards – have responded to a rapidly changing industry where regulations demand ever more detailed and constantly evolving documentation. All these help create a stronger, more efficient and sustainable industry – essential for economic recovery and meeting carbon reduction targets.

It’s never been simpler

Since it was launched in 2012, NBS Create – the world’s first BIM specification model – has revolutionised the way that construction data is created by supporting collaboration across the entire project team in one intelligent document.

NBS Create makes specifying simpler, faster, more intuitive and flexible, saving time and money and allowing more scope for creativity. It now includes four comprehensive libraries of content – architecture, landscape, services and structure – and is always up to date.

Embracing BIM

BIM is the way of the future. The National BIM Survey undertaken in 2012 was completed by over

1,350 respondents. This showed that 39 per cent of construction professionals are now using BIM – up from 31 per cent in 2011 – and that 71 per cent agree that BIM is ‘the future of project information’.

The intelligence gathered from the annual BIM surveys adds to our understanding of the market, making it possible to gauge different needs within the construction industry and develop and adapt products.

To support the growth of BIM as a highly effective business process, we launched the National BIM Library in March 2012. This free resource allows professionals in the construction industry to locate and download a wide selection of generic BIM objects for a comprehensive range of systems. The National BIM Library continues to grow. It now contains some 450 proprietary and pre-configured generic objects, with highly structured data on object performance. These cover all major building fabric systems such as walls, ceilings, roofs and floors.

New content is regularly added to make the National BIM Library the primary source of free-to-use UK BIM objects. The library now also includes proprietary objects linked to the National Building

RIBA Enterprises – the commercial arm of the RIBA – is a world-leader in providing information to architects and other professionals in the construction industry. Its expertise is unmatched – and increasingly in demand. It provides unique technical expertise to the government in its regular reviews of Building Regulations to improve quality and simplify the delivery of building projects.

RIBA Enterprises

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Above — Wall detail from the RIBA Village at Ecobuild 2013. Image: Duncan Smith Photography and Video.

Specification, with a growing number of manufacturer objects.

NBS resources, including NBS Create and the National BIM Library, support collaboration through the entire construction process. Their benefits featured prominently in RIBA CPD Roadshows organised by the RIBA CPD Providers Network around the country in 2012. Demand exceeded expectations.

Bringing it all together

Development of a comprehensive knowledge portal for construction

progressed during 2012. When it is launched in 2013, it will bring together in one place every kind of construction related book, tool, data, standard, journal or document – including the revised RIBA Plan of Work 2013.

It will help different construction sectors to work closely together and make the management of projects quicker and simpler. Architects and other construction industry professionals using the portal will be taken through the construction process from inception to completion, with guidance on

how to manage transition from one stage to the next.

RIBA Enterprises’ investment in new, innovative products has made sure that the construction industry has all the right tools to hand as it emerges from the economic downturn.

In 2012 RIBA Enterprises delivered a profit of £2.4 million to the RIBA, exceeding projections – all the more to help us promote better buildings, communities and environment.

David Miller Architects see themselves as a fairly typical small architectural practice, with 12 staff in a central London office working on affordable housing, schools, student housing and some mixed-use commercial work. And they see BIM as a fantastic opportunity for smaller practices. ‘BIM has reduced the grind of the production of information, allowing our talented staff to punch above their weight.’They are confident that BIM has generated repeat business, not least because the practice has been able to drive efficiencies from project to project as their database of components has become richer,

more refined and more reliable. The National BIM Library has made that easy. ‘One of the many benefits of using objects from the National BIM Library is that key performance data is already embedded into the object so this saves us time in not having to find and coordinate information from different sources.’Another is accurate, quantifiable information to back up sustainability strategies. BIM is not only good for David Miller Architects’ business; better designed and more sustainable buildings are good for clients too. Robert King, David Miller Architects

Embracing BIM – the future of project information

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First, we collectmembers’ subscriptions

£6.90m

next we add the profits from trading activities£4.46m

then we add other income from charitable activities£3.10m

and receive some voluntary income and net interest of£0.49m

to give us a total of£14.95mto spend on ourcharitable activities including£1.83m on regional and London premises

£0.92mon Depreciation

£0.20mon Governance

£1.00mrunning the President and Group Executive’s offices

£1.63mon Finance,HR and ICT

£0.22mon Development

£16m

£14m

£12m

£10m

£8m

£6m

£4m

£2m

£0m

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Where our money comes fromAnd where it gets spent

£1.13min support of membership

£1.07min support of Practice and Profession

£0.26mon International relations and members

£1.30mon covering our Policy and Communication effort

£0.33mon runningCompetitions £1.34m

on fundingthe Library

£1.18mon research and other education activities

£1.19mon celebrating and promoting goodarchitecture and

£1.80mon running our network of offices

leaving a total deficit on all reserves of £0.45m

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Financial review

The purpose of this financial review is to make it easier for readers to understand the main accounts presented later (see page numbers 58 to 73), the format of which is as specified by the accounting Statement of Recommended Practice (SORP) used by Charities. To help in this process, words presented below in bold are headings used in the Consolidated statement of financial activities (the SOFA) shown on page number 58.

Our income – where our money comes from

The RIBA is a charity, it is a membership organisation and it has strong commercial businesses in RIBA Enterprises Ltd and in its venues business. As such, it has wide-ranging sources streams of income, which to a certain extent helps protect it from the economic downturn. However, 2012 proved to be a tough year economically with income down against 2011. This is shown in the SOFA, where it can be seen that the RIBA received total incoming resources of £33.3 million, compared with £34.2m in 2011. This figure represents all of the monies received before allowing for any costs incurred to generate the income, and is sometimes called ‘gross income.’

Out of this total income, £6.9 million came from Subscription income (down just under 2 per cent compared with 2011) and £22.4 million from Activities for generating funds (Trading income), which mainly represents income generated by both RIBA Enterprises Ltd and by the Venues business, based at our Headquarters at 66, Portland Place. These two sources of income (subscriptions and trading) account for £29.3 million or 87.8 per cent of the total incoming resources.

RIBA Enterprises had a relatively good year despite a challenging market and after deducting intra-group sales showed a small increase in turnover of 1.7 per cent. Intra-group transactions are always excluded from the consolidated accounts because these show the overall position of the RIBA

Group’s relationship with the outside world. The RIBA Venues business is derived from the letting of rooms and from the supply of food and beverages. Taken together the total in 2012 was down 9.6 per cent on 2011.

A total of £3.1 million came from other activities in furtherance of the charity’s objects (i.e. other than subscription income). This income has been allocated to one of the four strategic priorities (core aims) of the Institute – clients, members, leadership and knowledge. These four strategic priorities (core aims) are discussed earlier in the report.

A total of £0.7 million came from donations (shown under Voluntary income), while £0.3 million came from interest received and dividends (shown under investment income).

Our expenditure – how we spend our money

The SOFA describes all expenditure as Resources Expended. Total Resources Expended during the year was £33.8 million, an increase on 2011 of just under 1 per cent. This total consists of two areas: firstly total costs of generating funds of £18.4 million and secondly; total charitable expenditure of £15.4 million.

The costs of generating funds are effectively the costs of running the RIBA’s commercial operations spent to generate the associated income explained above. The most significant area of trading expenditure relates to RIBA Enterprises. All the profits (£3.2 million) generated by both RIBA Enterprises and by RIBA 1834 Ltd were given to the RIBA by Gift Aid to support the wider charitable work of the RIBA.

Charitable expenditure, like income, is allocated to one of the four main strategic priorities (core aims). However, this makes it difficult to identify exactly where or how the money is spent. The chart opposite shows more exactly where the money (£15.4 million) has been spent.

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£1,828kPremises & Facilities

£1,796kNetwork of Offices

£1,187kCelebration ofGood Architecture

£1,183kEducation& Research

£922kDepreciation

£203kGovernance

£996kPresident &Group Exec

£1,627kFinance, HR& ICT

£224kDevelopment

£1,125kMembership£1,067k

Practice &Profession

£265kInternational

£1,303kCommunications,Policy & PublicAffairs

£330kCompetitions

£1,341kLibrary

Charitable expenditure by area

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w

Pension Scheme Funding Reserve

The Institute operates a defined contribution scheme whereby it pays a percentage of a member of staff’s salary into a pension fund and has no further liability. However, historically, like many employers, it used to offer a final salary scheme to its employees, whereby the pension they receive relates to the number of years worked by that employee and how much they were paid when they left the company’s employment. This is now considered to have been very generous and although this latter scheme was closed to new employees in 1994 and now has no active members, it is subject to great volatility as demonstrated by the figures presented on the accounts. On the SOFA on page 58, a separate column has been used to separate out the effects of this volatility. This shows a pension scheme actuarial gain of some £1.5 million, reducing the deficit to £8.7 million.

The Financial Reporting Standard (FRS17) governs some of the assumptions used and how the information is presented, in an attempt to take out any subjectivity in the numbers. However this makes it unnecessarily complex, while valuations can fluctuate from year to year. The most important point to be made is that every three years, the trustees of the 1974 pension scheme came to an agreement with the RIBA trustees on the valuation of the deficit, using a set of assumptions agreed by both parties and an agreed contribution schedule. The last full triennial valuation of the scheme, as at 31 December 2010, valued the deficit at £6.2 million. It was agreed to pay off that deficit by 31 August 2017 by making a number of regular monthly payments to eliminate the anticipated deficit. All payments in 2012 were in line with the agreed schedule, with all payments in 2013 similarly being paid.

Summary

Looking at income and expenditure together gives the final picture. This can be seen most clearly on the line entitled Net (outgoing) / incoming resources before other recognised gains. This shows an overall deficit for the year of £0.4 million, compared with an overall surplus of £0.5 million in 2011. The 2012 deficit was mostly anticipated, although it was higher than had been allowed for in the 2011 budget, with approval given by the trustees to increase expenditure on certain key areas of activity, such as the international programme, following on from a review of its main core activities during the course of the year. This was achieved by calling on reserves despite the noticeable fall in income, caused by the effects of the recession on all types of income which continued through the year.

The chart on pages 50-51 summarises where the RIBA generates income from (including its two key commercial businesses – RIBA Enterprises and its Venues operations). Total incoming resources available for charitable applications of £15.0 million compares with Total charitable expenditure of £15.4 million, leaving a deficit of £0.4 million.

Although the four core aims are discussed above, it might be useful to give examples of income in respect of each of these:

• Clients – Competitions and publications.• Members – Continuing Professional

Development (CPD) courses and RIBA Chartered Practice.

• Leadership – talks and lectures, architecture festivals, design reviews and the Awards programme.

• Knowledge – RIBApix sales and royalty income.

Balance Sheet

The Balance Sheet is shown on page 59. This shows the value of the Institute’s assets as at 31 December 2012, the last day of the accounting year, also known as the balance sheet date.

The most significant item on the balance sheet is the value placed upon the RIBA’s cultural (or heritage) assets comprising drawings, paintings, busts, books, periodicals, photographs and other archives. This was introduced in 2011 as a result of a new Financial Reporting Standard on Heritage Assets, known as FRS30. The RIBA decided that it had an obligation to adopt the spirit, as well as the letter of the new reporting standard and therefore put in a great deal of effort to come up with a realistic valuation, notwithstanding all the difficulties associated with valuing a collection of this size and nature.

A heritage asset is defined as “a tangible asset with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture.” The value placed on these assets as at 31 December 2012 is £262.7 million. This is a significant figure and clearly dominates the balance sheet. Putting it into perspective though, there is no doubt that the RIBA has a world-renowned collection of great architectural significance, which by being valued can be recognised as such. It is of great importance and it is the duty of the trustees to protect these assets, which have been acquired either through donation or by acquisition since its formation in 1834. The RIBA considers itself responsible not only for ensuring the continued preservation of the archives and collections for future generations, but for making them available to a wider current audience.

Basis for accounts preparation

The financial statements have been prepared on the accounting policies set out in note 1 to the financial statements and comply with the charity’s trust deed, applicable law and the requirements of the Statement of Recommended Practice, ‘Accounting and Reporting by Charities’ revised and issued in March 2005.

Investment policy

The RIBA’s investment policy is overseen by the Finance & Operations Committee on behalf of the trustees based on guidance from the RIBA’s investment managers, Schroders. The main investment policy objectives are to maintain the earning value of the capital so that the value of the sum available for disbursement is constant, to ensure risk to the funds is minimised and to otherwise maximise the annual return. The RIBA final salary scheme has a separate investment strategy overseen by the pension scheme trustees.

In investment terms, 2012 turned out to be a positive year, although financial markets certainly tested nerves. Markets were buffeted by two key forces: political risk and liquidity. The risk of some

Financial review

54

w

type of Eurozone break-up escalated during the spring and investors became nervous about gaps in sovereign funding, notably in Spain, while Greece was forced to restructure its debt. Meanwhile, fears were growing of a potential hard landing in China, with exports to Europe and the US being hit by poor demand. Eventually, calmer political environment and the promise of greater liquidity in Europe and in the US counteracted negative sentiment and helped to re-ignite a rally in equity markets.

The FTSE All Share Index grew by 12.3% in 2012 (compared with a 3.5% fall in 2011), while global equity markets also generated positive returns with the MSCI World Index increasing by 11.4% (4.3% fall in 2011).

The RIBA investment portfolio is invested in the Schroder Charity Multi-Asset Fund and Schroder Global Climate Change Fund and generated a total return of 10.8% in 2012. The Charity Multi-Asset Fund has a target return objective of inflation (i.e. the Retail Prices Index) plus 4% per annum over an economic cycle, with a secondary aim to achieve equity-like returns with reduced volatility. The Fund has exposure to real assets such as equities and property and therefore will not be immune to any market falls, although the strategy aims to reduce any such effects. The Global Climate Change Fund aims for long-term capital growth, outperforming the MSCI World Index, by investing in companies benefiting (or likely to benefit) from efforts to mitigate or adapt to climate change.

Reserves policy

All charities need to have reserves in order to underwrite their day to day activities. The level of reserves held is a matter of judgement for the trustees, who have decided to take a risk-based approach to determining the level of reserves required, based on their understanding of the business model faced by the Charity. In particular, the target level has been assessed after considering the following key factors:

• reliability of its income;• flexibility of its costs in terms of whether they are

fixed or variable;• availability of cash; and• requirements to invest in order to deliver its

objectives.

The RIBA has defined ‘free reserves’ as the Unrestricted general reserves less an estimate for its anticipated commitments. The RIBA then compares this figure against the assessed target level of reserves at the balance sheet date.

As at the end of 2012 the level of reserves held was:

Structure

The Royal Institute of British Architects (RIBA) was incorporated by Royal Charter (its Trust Deed, by which it is governed) in 1834 and was registered as a Charity on 14 August 1962 (Registration Number 210566). A list of current trustees is included on page 74, together with a list of principal advisors.

The RIBA has two main subsidiary companies, RIBA Enterprises Ltd and RIBA 1834 Ltd. The RIBA also has twelve administrative regions (including the Royal Society of Architects in Wales), as well as over sixty branches.

Governance

A Board of Trustees (the RIBA Board) was set up on 25 March 2010 to take over from the RIBA Council the fiduciary responsibility, group co-ordination and direction of operational matters.

RIBA Board members consist of Honorary Officers, non-executive members and others appointed by RIBA Council.

The RIBA Council is responsible for deciding major issues of architectural policy as well as a number of matters specifically related to a membership body, as set out in the Byelaws (including control of the heritage assets of the Institute and its main building at 66 Portland Place). It also decides on the appointment (and removal) of members of the RIBA Board and Directors of the subsidiary companies.

RIBA Council members generally serve three year terms and are elected by the membership in accordance with the Byelaws, which are available on the RIBA website.

During 2011, the Committee structure was reviewed with a few new Committees formed with Terms of Reference coming into effect in October 2011. There are now seven main committees, namely Finance and Operations Committee, British Architectural Trust Board, Membership Committee, International Committee, Education Committee, Nations and Regions Committee and Practice & Profession Committee. All main committees report to the RIBA Board. They are chaired by the relevant vice-president. There are also a number of sub-committees. All Boards and committees consist of trustees, Council members, RIBA members, lay members and in some cases, executives.

The committees advise on the formulation of policy and strategy relevant for their areas, recommending priorities for the business plan and budget (both income and expenditure). They also review the implementation of Council policies and the progress of work against agreed objectives. They appoint task groups and specialist advisers for relevant projects and subjects. A formal trustee induction procedure is in place and all new trustees are provided with a full induction pack.

Members Volunteering

An estimate of the total time given by volunteers to further the RIBA’s charitable activities was made for the first time in 2012. This indicated that over 40,000 hours (excluding travel time) were freely given by our members, which when costed out would come to over £1.8 million in value. This reflects very well on all of our members who give up their time in a wide variety of ways to support the RIBA at all levels and promoting architecture to the public.

2012 £’000

2011 £’000

General reserves 5,539 7,350less commitments (1,877) (2,319)

Free reserves 3,662 5,031Target level of reserves as at 31 December 3,063 4,392

Free reserves as a percentage of target reserves(Target = 100%)

119.6% 114.5%

Structure, governance & management

55

Management

Harry Rich, as Chief Executive has a number of delegated powers and reports directly to the RIBA Board. Members of the Group Executive and Senior staff teams are listed on page 74.

Risk Management

The management of risk is an integral part of the RIBA’s operational management and a series of systems of internal controls, procedures and checks operate in order to identify and mitigate risk. These include:

• An integrated skills based board with effective separation of duties and regular reporting of management information;

• Local operational risks are reported on a regular quarterly basis;

• Strategic risks, defined as those which could prevent the RIBA from achieving its strategic objectives are reviewed every six months by the Senior staff team and the RIBA Audit Committee and also by trustees at least once a year;

• The Board has adopted and reviews at least once a year a Risk policy, which clearly outlines the RIBA’s risk appetite and ensures risks carried out remain in line with this appetite.

The trustees have considered the major risks that could affect the RIBA and prioritised them in terms of the likelihood of their occurrence and the potential impact on the RIBA. They then considered the existing systems designed to mitigate those risks. This work has satisfied the trustees that the systems in place adequately mitigate the RIBA’s exposure to the identified major risks. In addition, the RIBA Audit Committee reviews the effectiveness of internal financial controls and risk management systems.

The main risks identified and managed during the year were:

• recession, including exposure to the Construction industry and the impact on subscription and other income;

• failure to raise sufficient funds to allow the RIBA to implement its revised strategy;

• damage to, or deterioration of, the RIBA’s library and special collections;

• breach of trust, infringement of IP and passing-off;

• a lack of adequate and appropriate business continuity;

• adverse publicity, including damage to the RIBA brand and reputation; and

• funding of the 1974 pension scheme.

Statement of the trustees’ responsibilities

The trustees are responsible for preparing the trustees’ report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

The law applicable to charities in England and Wales requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charity and the group and of the incoming resources and application of resources of the group for that period. In preparing these financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation.

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity (Accounts and Reports) Regulations 2008 and the provisions of the trust deed. They are also responsible for safeguarding the assets of the charity and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The trustees are responsible for the maintenance and integrity of the charity and financial information included on the charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The RIBA is committed to ensuring that, within reason, no person will suffer less favourable treatment than others on the grounds of disability.

Signed for and on behalf of the Board of Trustees:

Angela Brady, President 23 May 2013

Structure, governance & management

56

Independent auditors’ report

We have audited the financial statements of Royal Institute of British Architects for the year ended 31 December 2012 which comprise the Group Statement of Financial Activities, the Group and Parent Charity Balance Sheets, the Group cashflow statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

This report is made solely to the trustees as a body, in accordance with section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. Our audit work has been undertaken so that we might state to the trustees those matters we are required to state to them in an auditors’ report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charity and the trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Respective responsibilities of trustees and auditors

As explained more fully in the Statement of responsibilities of the trustees set out in the report of the trustees, the trustees are responsible for the preparation of financial statements which give a true and fair view.

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with regulations made under section 44 of that Act. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the group’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the trustees; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the report of the trustees to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

• give a true and fair view of the state of the group and parent charity’s affairs as at 31 December 2012, and of the group’s incoming resources and application of resources, for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Charities Act 2011.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities Act 2011 requires us to report to you if, in our opinion:

• the information given in the report of the trustees is inconsistent in any material respect with the financial statements; or

• sufficient accounting records have not been kept; or

• the financial statements are not in agreement with the accounting records and returns; or

• we have not received all the information and explanations we require for our audit.

Date 14 June 2013

Sayer Vincent, Statutory Auditors, 8 Angel Gate, City Road, LONDON EC1V 2SJ

Sayer Vincent is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006

57

Financial statements

Note

Unrestricted funds £’000

Pension Scheme funding reserve

£’000

Restricted funds £’000

Endowment funds £’000

Total 2012

£’000

Total 2011

£’000

Incoming resources from charitable activitiesActivities in furtherance of the charity’s objects:Subscription income 6,900 - - - 6,900 7,029Clients 444 - - - 444 454Members 1,711 - - - 1,711 1,739Leadership 740 - 65 - 805 1,748Knowledge 141 - - - 141 375

9,936 - 65 - 10,001 11,345Voluntary incomeDonations, legacies and similar income 681 - 37 - 718 171

Activities for generating fundsTrading income 2 22,352 - - - 22,352 22,432

Investment incomeInterest received and dividends 109 - 153 - 262 239

Total incoming resources 33,078 - 255 - 33,333 34,187

Resources expendedCosts of generating funds:Trading expenditure 18,453 (560) - - 17,893 17,501Pension finance costs 23 - 490 - - 490 177

Total costs of generating funds 18,453 (70) - - 18,383 17,678

Total incoming resources available for charitable applications 14,625 70 255 - 14,950 16,509

Charitable expenditureClients 884 (39) - - 845 793Members 6,658 (329) 124 - 6,453 6,042Leadership 3,572 (151) 121 - 3,542 3,949Knowledge 4,469 (271) 102 - 4,300 4,985Governance costs 7 259 - (3) - 256 244

Total charitable expenditure 4 15,842 (790) 344 - 15,396 16,013

Total resources expended 34,295 (860) 344 - 33,779 33,691

Net (outgoing) / incoming resources before other recognised gains (1,217) 860 (89) - (446) 496

Gains / (Losses) on investments 11 - - - 219 219 (317)Revaluation of heritage assets 10 169 - - - 169 -Pension scheme actuarial gain / (loss) 23 - 1,522 - - 1,522 (6,712)

Net movement in funds (1,048) 2,382 (89) 219 1,464 (6,533)

Funds brought forward 17 to 19 276,251 (11,103) 1,751 2,712 269,611 276,144

Total funds carried forward 275,203 (8,721) 1,662 2,931 271,075 269,611

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Notes 17 to 19 to the financial statements.

Consolidated statement of financial activities (incorporating an income and expenditure account)For the year ended 31 December 2012

58

The RIBA group The RIBA charity

Note2012

£’0002011

£’0002012

£’0002011

£’000

Fixed assetsIntangible assets 8 582 641 - -Tangible assets 9 10,718 10,320 10,215 10,091Heritage assets 10 262,667 261,740 262,667 261,740Investments - in subsidiary undertakings 11 - - 1,319 1,319Investments – other 11 3,538 3,317 3,538 3,317

277,505 276,018 277,739 276,467Current assetsStocks and work in progress 12 1,064 1,001 - 4Debtors 13 5,329 4,936 1,278 1,647Short-term cash deposits at bank 4,079 3,297 543 717Cash at bank and in-hand 5,935 9,542 4,525 5,913

16,407 18,776 6,346 8,281

Creditors: amounts falling due within one year 14 (13,640) (13,440) (4,257) (3,902)

Net current assets 2,767 5,336 2,089 4,379

Total assets less current liabilities 280,272 281,354 279,828 280,846

Creditors: amounts falling due after more than one year 15 (476) (640) - (100)

Net assets excluding pension liability 279,796 280,714 279,828 280,746

Pension Scheme liability 23 (8,721) (11,103) - -

Net assets including pension liability 271,075 269,611 279,828 280,746

Represented by:Restricted funds 17 1,662 1,751 1,662 1,751Endowment funds 18 2,931 2,712 2,931 2,712

Unrestricted funds:• Revaluation reserves 7,095 7,161 7,095 7,161• Heritage Assets reserves 262,569 261,740 262,569 261,740• General reserves 5,539 7,350 5,571 7,382

Total unrestricted funds 19 275,203 276,251 275,235 276,283Total charity funds excluding pension reserve 279,796 280,714 279,828 280,746

Pension Scheme Funding Reserve (8,721) (11,103) - -

Total charity funds 271,075 269,611 279,828 280,746

Approved by the trustees on 23 May 2013 and signed on their behalf by:

Angela BradyPresident

Balance sheetAs at 31 December 2012

59

Financial statements

Note 2012£’000 £’000 2011

£’000 £’000

Net cash (outflow) / inflow from operating activities 21 (1,405) 422

Returns on investments and servicing of financeInterest and dividends received 262 239

262 239

Less corporation tax paid (35) (12)

Capital expenditure and financial investmentPurchase of tangible fixed assets (1,538) (710)Acquisition of Heritage Assets (107) (209)Purchase of investment securities (2) (4)Sale of tangible fixed assets - 2

(1,647) (921)

Net cash inflow before financing (2,825) (272)

Decrease in cash 22 (2,825) (272)

Consolidated cash flow statementFor the year ended 31 December 2012

60

Notes to the financial statements For the year ended 31 December 2012

1. ACCOUNTING POLICIES

The financial statements have been prepared under the historical cost convention except for the revaluation of a long leasehold property and investments, which are shown at market value. They have been drawn up in accordance with applicable accounting standards and the Charities Act 2011. They follow the recommendations in the Statement of Recommended Practice, Accounting and Reporting by Charities (issued in March 2005).

Basis of consolidation

These financial statements consolidate the results of the charity and its wholly-owned subsidiaries on a line by line basis. Transactions and balances between the charitable company and its subsidiaries have been eliminated from the consolidated financial statements. Balances between the group companies are disclosed in the notes of the charity’s balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by paragraph 397 of SORP 2005.

Depreciation and amortisation

Depreciation is provided on a straight line basis at an annual rate calculated to write down each asset to its residual value over the term of its expected useful life. The rates in use are as follows:

Long leasehold buildings 2% per annum Short leasehold buildings over the remaining period of the lease Property improvements 3.3% – 20% per annum Motor vehicles 20 – 25% per annum Office equipment 10 – 25% per annum Computer equipment 20 – 33% per annum Website 10% per annum Website software 33% per annum

Intangible assets

Goodwill arising on the acquisition of investments is amortised over 20 years from the date of acquisition. Goodwill is calculated as the difference between the fair value of the assets acquired, and the consideration paid on acquisition.

Heritage assets

A heritage asset is defined as “a tangible asset with historical, artistic, scientific, technological, geophysical or environmental qualities that is held and maintained principally for its contribution to knowledge and culture.” The Institute has estimated a value in these financial statements in respect of its various collections of drawings, paintings, busts, books, periodicals, photographs, archives and other heritage assets. The methodology for the valuations, which was reviewed by BDO an independent firm of auditors as well as our own auditors, allows for a proportion of these assets to be re-valued on an ongoing rolling basis. The valuations have been carried out using RIBA’s curatorial staff, recognised as leading experts in the field, using a number of methods, including the use of average costs for certain categories of heritage assets. Any acquisitions are shown either at cost or in the case of donations at an estimated valuation on the date of receipt. Any gains or losses on revaluation will be recognised in the Statement of Financial Activities.

Taxation

The RIBA is a registered charity and benefits from tax exemptions available to charities. The main subsidiaries of the RIBA, RIBA Enterprises Ltd and RIBA 1834 Ltd are subject to corporation tax on their taxable profits. The majority of these taxable profits are donated under gift aid to the RIBA.

Stocks and work in progress

Stocks are valued at the lower of cost and net realisable value.

Deferred costs

Deferred costs represent costs incurred against products and events due to be published or take place in the following financial year and are carried forward in prepayments.

Grants, donations and sponsorship income

Income from the above sources is credited to the statement of financial activities in the period when the RIBA is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Subscriptions

Subscriptions are credited to the statement of financial activities in the period to which they relate.

Regions and branches

Regions’ accounts are included in the figures of the RIBA, along with an estimate of assets held in RIBA branches.

61

Leasing and purchase agreements

Rentals under operating leases are charged directly to the Statement of Financial Activities on a straight line basis over the lease term.

Pensions

Retirement benefits to employees are funded by contributions from both the Institute and its subsidiaries to a defined benefits scheme. The assets and liabilities of the scheme are held separately from the Institute. The charity has adopted in full the provisions of FRS 17 (Retirement benefits). The FRS 17 approach requires the movement in the pension scheme for the year to be reported in the Statement of Financial Activities and the accumulated deficit or surplus to be reported in the balance sheet.

The current service costs of the defined benefit pension scheme together with the scheme interest cost less the expected return on the scheme assets for the year are charged to the Statement of Financial Activities within staff costs. They are allocated to the different categories within resources expended on the Statement of Financial Activities on the same basis as other costs. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses.

The group also contributes to defined contribution schemes for eligible employees. The cost of the group’s contributions to these schemes is charged to the income and expenditure account in the year to which it relates.

Apportionment of expenditure

All charitable expenditure is apportioned to four main areas of activity, being clients, members, leadership and knowledge on the basis of the principal involvement for each individual department. All support costs are allocated to one of the four main areas of activity. For further details, see note 4 to the accounts.

All expenses are accounted for on an accruals basis. Any irrecoverable VAT is included with the item of expense to which it relates.

Restricted Funds

The funds of the charity include restricted income funds, which comprise unexpended balances of donations and grants and subsequent related investment income, and endowment funds which comprise capital funds donated to the charity together with subsequent related investment gains and losses. These funds are all held on trust to be applied for specific purposes in accordance with the wishes of the individual donors.

These funds have been accumulated over the years from donations and are each subject to donors’ restrictions mainly relating to education, library and similar activities. Unspent accumulated income from the endowments is held in separate restricted funds, as shown in note 17, available for expenditure on the relevant specific purposes.

2. ANALYSIS OF THE RESULTS OF SUBSIDIARIES

The RIBA has two main wholly owned subsidiaries, both of which are incorporated in the UK. Neither of the two other subsidiaries RIBA Trust Ltd and RIBA Professional Services Ltd traded during the year. Both of these companies are 100% owned by RIBA 1834 Ltd. A summary of the results of the two main subsidiaries are shown below. Profits made by RIBA Enterprises Ltd and RIBA 1834 Ltd are gift aided to the RIBA.

Company Turnover £’000

Expenditure £’000

Profit / (loss) £’000

Retained earnings

£’000

RIBA Enterprises Ltd 19,516 17,097 2,419 (32)RIBA 1834 Ltd 12,088 11,323 765 -

Included above are intra-group sales of £8,865k included as turnover and £9,755k included as costs.

3. OTHER SIMILAR NAMED ORGANISATIONS

The RIBA is Custodian Trustee to the British Architectural Library Trust (BALT), which is a separately registered but dormant Charity (Registration number 267936), having transferred all its assets in 2010 to the RIBA.

A separately registered Charity called the RIBA Education Fund (Registration number 1063625) exists to make ex-gratia payments and maintenance grants to architectural students experiencing financial hardship.

Neither Charity is consolidated into these accounts.

Financial statements

62

Staff costs£’000

Other£’000

Depreciation £’000

Allocation of support

costs £’000

2012£’000

2011£’000

Clients 56 352 - 437 845 793Members 1,495 1,287 - 3,671 6,453 6,042Leadership 657 1,196 - 1,689 3,542 3,949Knowledge 1,162 66 43 3,029 4,300 4,985Support costs 4,666 3,239 921 (8,826) - -Governance costs - 256 - - 256 244

Total 8,036 6,396 964 - 15,396 16,013

Other support costs (£3,239k) include premises costs (e.g. rent, rates, utilities and maintenance costs), insurance, training, bank charges and ICT costs.

4. ANALYSIS OF CHARITABLE EXPENDITURE

RIBA Group2012

£’0002011

£’000

Wages and salaries 14,600 14,030Social security costs 1,462 1,430Other pension costs – stakeholder schemes 838 820Other pension costs – defined benefit 1,350 1,500

18,250 17,780

Total emoluments paid to staff were: 15,438 14,850

All staff members are employed by either RIBA 1834 Ltd or RIBA Enterprises Ltd and costs are charged to the relevant subsidiary company. These are shown under either charitable expenditure or costs of generating funds.

The average number of persons employed on the activities of the companies during the year was:

RIBA Group2012

£’0002011

£’000

Royal Institute of British Architects 194 192RIBA 1834 Limited 11 12RIBA Enterprises Limited 254 248

Total 459 452

The number of employees of the RIBA and its subsidiaries whose emoluments fell in the following bands were as follows:

RIBA Group2012

£’0002011

£’000

£60,000 - £69,999 9 12£70,000 - £79,999 6 3£80,000 - £89,999 3 1£90,000 - £99,999 3 3£100,000 - £109,999 1 -£110,000 - £119,999 3 3£150,000 - £159,999 1 1£160,000 - £169,999 1 1

In relation to the employees in the bandings shown above, £183,195 was paid to defined contribution pension schemes.

5. STAFF COSTS AND NUMBERS Staff costs were as follows:

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Financial statements

6. TRUSTEE EXPENSES

Trustees of the RIBA are reimbursed reasonable expenses incurred when on RIBA business. 16 current and former trustees (2011 - 12) claimed such expenses and the total amount reimbursed was £51,598 (2011 - £32,848).

During the year £35,135 (2011 - £64,694) was paid to Urban Splash Ltd in the normal course of business for the rental and recharge of service charges and other costs (including VAT) of the RIBA North West office. A director of this company is a trustee of the RIBA.

One trustee was paid £900 during 2012 for some CPD assessment and pre-assessment work carried out at the same rate as is paid to other architects for this specialist type of work. Another trustee was paid £480 for some design review work, again at comparable rates for specialist work.

Trustees have been asked to sign declarations to confirm any payments that need to be disclosed. No other such payments have been declared.

7. GOVERNANCE COSTS Governance costs consist of legal, auditors’ fees and expenses for trustee meetings.

Charges include: RIBA Group

2012 £’000

2011 £’000

Auditors’ remuneration – as auditors• current year 58 60• prior year - 4Auditors’ remuneration – for other services 3 7

8. INTANGIBLE ASSETS

RIBA GroupGoodwill

£’000Copyright

£’000 Total £’000

Cost:As at 1 January and 31 December 2012 2,194 1 2,195

Amortisation:As at 1 January 2012 1,554 - 1,554Charge for the year 59 - 59

As at 31 December 2012 1,613 - 1,613

Net book value:As at 31 December 2012 581 1 582

As at 31 December 2011 640 1 641

9. TANGIBLE FIXED ASSETS

RIBA Group

Properties and property investments

£’000

Motor vehicles

£’000

Office and computer

equipment £’000

Total£’000

Cost or valuation:As at 1 January 2012 14,671 112 8,310 23,093Additions 543 19 976 1,538Disposals (66) - (232) (298)

As at 31 December 2012 15,148 131 9,054 24,333

Depreciation:As at 1 January 2012 5,691 105 6,977 12,773Charge for the year 480 6 649 1,135Eliminated in respect of disposals (63) - (230) (293)

As at 31 December 2011 6,108 111 7,396 13,615

Net book value:As at 31 December 2012 9,040 20 1,658 10,718

As at 31 December 2011 8,980 7 1,333 10,320

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The heading Property and property improvements includes 66 Portland Place which was last valued on 22 October 1987 when the property was valued at £8,500,000, an upwards revaluation of £7,896,000. In the opinion of the trustees, the value of the property is in excess of this amount, but they do not consider an up to date valuation to be an appropriate use of the Charity’s resources. The lease on the 66/68 Portland Place property expires on 6 July 2930.

The lease on 77 Portland Place is an operating lease and is included as such in note 16.

The lease on the facilities at the Victoria and Albert Museum, which is rent free, may be determined at any time after 2019 (but is subject to compensation if this is before 2034).

RIBA Group

Properties and property

improvements£’000

Motor vehicles

£’000

Office and computer

equipment £’000

Total£’000

Charity assets 9,040 16 1,159 10,215Trading subsidiaries - 4 499 503

9,040 20 1,658 10,718

RIBA Charity

Properties and property

improvements£’000

Motor vehicles

£’000

Office and computer

equipment £’000

Total£’000

Cost or valuation:As at 1 January 2012 14,346 65 6,461 20,872

Additions in year 544 19 531 1,094Disposals (9) - (180) (189)

As at 31 December 2012 14,881 84 6,812 21,777

Depreciation and amortisation:As at 1 January 2012 5,366 65 5,350 10,781Charge for the year 480 3 481 964Eliminated in respect of disposals (5) - (178) (183)

As at 31 December 2012 5,841 68 5,653 11,562

Net book value as at 31 December 2012 9,040 16 1,159 10,215

Net Book Value as at 31 December 2011 8,980 - 1,111 10,091

10. HERITAGE ASSETS

As at 31 December 2011, the RIBA estimated a value in these financial statements in respect of its various collections of drawings, paintings, busts, books, periodicals, photographs, archives and other assets following the introduction of the new reporting standard FRS30. As custodian of one of the finest architectural collections in the world, it was agreed with the auditors that the RIBA’s curatorial staff had sufficient detailed knowledge of the collections for it to be valued and accordingly no external valuers were engaged.

During the year, the Institute acquired and were also donated further heritage assets. All donations have been included in additions at a fair valuation. The values of all assets are shown below against each category.

Drawings and collections

£’000

Books and periodicals

£’000Photographs

£’000Other£’000

Total 2012 £’000

Total 2011 £’000

Heritage assets at valuationAs at 1 January 200,119 17,292 39,290 5,039 261,740 261,531Additions – purchases 9 85 13 - 107 94Additions – donations 12 - 556 83 651 115Revaluation - - - 169 169 -

As at 31 December 200,140 17,377 39,859 5,291 262,667 261,740

Drawings

The RIBA has over one million drawings. The most valuable of these drawings have been valued individually by a staff member, who is deemed to be suitably qualified to be able to do so. All other drawings have been stratified into value ranges and an average value.

65

Financial statements

Books and periodicals

Books held for permanent retention, which forms the majority of books held are regarded as heritage assets and are valued as such. The books available for loan to members are deemed to be operational assets. The periodicals collection includes runs of major journals worldwide. In total, the RIBA owns about 110,000 books and has over 23,000 bound journal volumes.

Photographs

The RIBA holds about 1.5 million photographs in a variety of format and type of medium. An increasing number of these can be viewed on the website www.architecture.com and images can be purchased, which in turn provides funding for more to be made available.

Archives

The archives consist of a number of internal documents, together with letters and other papers relating to individual architects. The internal documents are not considered to have any significant value attached to them and have not been valued. The letters and other papers are organised into about 800 separate collections and have been valued.

11. INVESTMENTS

In subsidiary companies

RIBA Charity2012

£’0002011

£’000

Investments in group companies:Ordinary shares 1,319 1,319Provision against investment - -

1.319 1,319

The RIBA owned two main trading subsidiary companies (both of which are 100% subsidiaries and registered in England and Wales) throughout 2011 and 2012:

Name Principal activities

RIBA 1834 Ltd Venues and RIBA Competitions.

RIBA Enterprises Ltd Publications and information services for use in architecture, construction and design.

The RIBA also owns 100% of RIBA Trust Ltd, RIBA Professional Services Ltd and RIBA Journals Ltd, none of which traded in 2012. The RIBA has a related company RIBA Insurance Agency Ltd, which is also dormant.

Other

RIBA Group and RIBA charity – Fixed asset investments:

2012 £’000

2011 £’000

Market value at 1 January 3,317 3,630Net investment gains / (losses) 219 (317)Increase in cash held for investment 2 4

Market value at 31 December 3,538 3,317

Historical cost at 31 December 3,417 3,415

The following investments (all of which are UK held) are held as follows:

2012 £’000

2011 £’000

Unitised funds 3,438 3,219Cash 100 98

3,538 3,317

Investments valued at over 5% of the market value at 31 December 2012 are as follows:

Holding

Market value 31/12/2012

£’000

Schroder’s Charity Multi-Asset Fund 6,883,448 3,087Schroder’s Global Climate Change 429,485 232

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12. STOCKS AND WORK IN PROGRESS

RIBA Group RIBA charity2012

£’0002011

£’0002012

£’0002011

£’000

Goods for resale 1,064 1,001 - 4

13. DEBTORS RIBA Group RIBA charity

2012 £’000

2011 £’000

2012 £’000

2011 £’000

Trade debtors 4,151 3,679 209 417Prepayments and accrued income 830 809 492 452Other debtors 348 448 208 201Due from subsidiary undertakings - - 369 577

5,329 4,936 1,278 1,647

14. CREDITORS: amounts falling due within one year RIBA Group RIBA charity

2012 £’000

2011 £’000

2012 £’000

2011 £’000

Trade creditors 1,863 1,998 1,475 1,268Corporation tax 39 74 - -Other tax and social security 890 744 - -Other creditors 455 636 341 508Accruals and deferred income 10,393 9,988 1,843 1,745Due to subsidiary undertakings - - 598 381

13,640 13,440 4,257 3,902

15. CREDITORS: amounts falling due after more than one year RIBA Group RIBA charity

2012 £’000

2011 £’000

2012 £’000

2011 £’000

Accruals and deferred income 476 640 - 100

16. COMMITMENTS UNDER OPERATING LEASESThe RIBA group is committed to spend the following annual amounts under operating leases expiring:

Property Others2012

£’0002011

£’0002012

£’0002011

£’000

Within one year 89 79 33 31Between two and five years 837 884 130 91In more than five years 47 47 - -

973 1,010 163 122

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Financial statements

17. RESTRICTED FUNDS

RIBA group and RIBA charity – Restricted Funds

At the start of the year

£’000

Incoming resources

£’000

Resources expended

£’000

At the end of the year

£’000

Drawings collection fund – London 52 2 (3) 51Banister Fletcher History of Architecture 84 9 - 93Estate of RV Taylor 10 - (10) -Gordon Rickets Bursary 28 1 (3) 26Library Exhibition Fund (Heinz Gallery) 117 4 (8) 113Heinz Exhibition Fund 12 - - 12Giles Worsley Fund 151 9 (6) 154Library Education Centre 27 - (5) 22Rootstein Hopkins Fund 38 2 (21) 19Digital Image Database 126 - (41) 85Research Trust Funds 62 29 (59) 32Prizes Trust 13 2 - 15Annie Spink Memorial Scholarship 118 6 (10) 114RIBA Award Trust 127 17 (40) 104W J Parker Trust 103 15 (20) 98Sir Banister Fletcher Library Bequest 41 5 (7) 39W H Ansell Bequest 36 2 - 38Nadine Beddington Trust 41 6 (1) 46Henry Jarvis Bequest 17 1 - 18Goldfinger Trust 153 6 - 159LKE Ozolins Bequest 86 19 (13) 92C Jencks Exchange Fund 12 4 (2) 14R S Reynolds Awards 14 - - 14Norman Foster Travelling Scholarship 10 7 (6) 11Lasdun Cataloguing (14) 14 - -BALT 227 10 (7) 230Melvin Memorial 2 - - 2RIBA North West – Places Matter - 65 (65) -RIBA East – CPD Fund 25 1 (1) 25Other 33 19 (16) 36

Total Restricted Funds 1,751 255 (344) 1,662

These funds are held to serve a number of purposes principally educational and funding the Library Collections. These restricted funds can be only be used for the express purpose for which they have been given.

18. ENDOWMENT FUNDSEndowment funds are invested to generate income, which is then held in a series of separate restricted funds (see Note 17).

RIBA group and RIBA charity – Endowment Funds

Balance at 1 January

2012 £’000

Transfers £’000

Unrealised gain /(loss) on

investments£’000

Balance at 31 December

2012£’000

Research Trust Funds 764 - 61 825Prizes Trust 52 - 5 57Annie Spink Memorial Scholarship 69 - 5 74RIBA Award Trust 341 - 27 368W J Parker Trust 309 - 25 334Sir Banister Fletcher Library Bequest 89 - 8 97W H Ansell Bequest 18 - 2 20Nadine Beddington Trust 137 - 11 148Henry Jarvis Bequest 16 - 2 18LKE Ozolins Bequest 463 - 37 500C Jencks Exchange Fund 96 - 8 104Norman Foster Travelling Scholarship 186 - 15 201Giles Worsley Fund 97 - 8 105BALT 61 - 5 66Other 14 - - 14

Total Endowment Funds 2,712 - 219 2,931

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19. UNRESTRICTED FUNDS

RIBA group

Balance at 1 January

2012 £’000

Transfer between reserves

£’000

Net movement – unrestricted

funds £’000

Balance at 31 December

2012£’000

Revaluation reserve 7,161 (66) - 7,095Heritage Assets reserves 261,740 - 829 262,569General reserve 7,350 66 (1,877) 5,539

276,251 - (1,048) 275,203

RIBA charity

Balance at 1 January

2012 £’000

Transfer between reserves

£’000

Net movement – unrestricted

funds £’000

Balance at 31 December

2012£’000

Revaluation reserve 7,161 (66) - 7,095Heritage Assets reserves 261,740 - 829 262,569General reserve 7,382 66 (1,877) 5,571

276,283 - (1,048) 275,235

20. ANALYSIS OF GROUP NET ASSETS BETWEEN FUNDS

Fund balances as at 31 December 2012 are represented by:

Unrestricted funds£’000

Restricted funds£’000

Endowment funds£’000

Total funds£’000

Intangible fixed assets 582 - - 582Tangible fixed assets 10,683 35 - 10,718Heritage assets 262,667 - - 262,667Investments 90 517 2,931 3,538Current assets 15,175 1,232 - 16,407Current liabilities (13,518) (122) - (13,640)Long-term liabilities (476) - - (476)Pension Scheme liability (8,721) - - (8,721)

Total net assets 266,482 1,662 2,931 271,075

21. RECONCILIATIONS OF NET INCOMING RESOURCES TO NET CASH INFLOW FROM OPERATING ACTIVITIES

2012£’000

2011£’000

Net incoming resources before gains on investment (446) 496Investment income and interest received (262) (239)Corporation tax paid 35 12Heritage assets donated (651) -Loss on sale of fixed assets 5 21Depreciation charges 1,135 1,381Amortisation of goodwill 59 59(Increase)/decrease in stocks (63) 55(Increase) in debtors (393) (47)Increase in creditors 36 7Pensions reserve funding movements (860) (1,323)

Net cash inflow from operating activities (1,405) 422

22. RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS

2012£’000

2011£’000

Increase in cash and short term cash deposits in the period (2,825) (272)

Movement in net debt in the period (2,825) (272)

Net funds at 1 January 12,839 13,111

Net funds at 31 December 10,014 12,839

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23. PENSIONS

The RIBA makes contributions to three pension schemes as described in note 1, two of which are stakeholder schemes and one of which is a defined benefit scheme.

Stakeholder pension schemes

The RIBA operates two stakeholder pension schemes for the benefit of all staff. They are money purchase schemes where the employee contributes 4% to 6% and the employer 8 to 16.5% of salary depending on age. The amount of this contribution was £838,000 (2011 - £820,000).

Defined Benefit Scheme

FRS17 disclosures

The group operates a defined benefit scheme in the UK. A full actuarial valuation was carried out at 31 December 2010 by a qualified actuary.

Change in benefit obligation

Year ended 31/12/12

£’000

Year ended 31/12/11

£’000

Benefit obligation at beginning of year 45,317 41,212Interest cost 2,084 2,161Actuarial gains 1,475 3,588Benefits paid (1,965) (1,644)

Benefit obligation at end of year 46,911 45,317

Change in plan assets

Year ended 31/12/12

£’000

Year ended 31/12/11

£’000

Fair value of plan assets at beginning of year 34,214 35,498Expected return on plan assets 1,594 1,984Actuarial gain / (loss) 2,997 (3,124)Employer contribution 1,350 1,500Benefits paid (1,965) (1,644)

Fair value of plan assets at end of year 38,190 34,214

Amounts recognised in the balance sheet

Year ended 31/12/12

£’000

Year ended 31/12/11

£’000

Plans that are wholly unfunded and plans that are wholly or partly funded

Present value of wholly or partly funded obligations 46,911 45,317Fair value of plan assets 38,190 34,214

Deficit / (surplus) for funded plans 8,721 11,103

Net liability 8,721 11,103

Amounts in the balance sheet:Liabilities 8,721 11,103Assets - -

Net liability 8,721 11,103

Financial statements

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Components of pension cost

Year ended 31/12/12

£’000

Year ended 31/12/11

£’000

Current service cost -Curtailment loss recognised -Interest cost 2,084 2,161Expected return on plan assets (1,594) (1,984)

Total pension cost recognised in SOFA 490 177

Actual return on plan assets 4,578 (1,136)

Actuarial losses / (gains) immediately recognised (1,522) 6,712

Actuarial losses / (gains) recognised in SOFA (1,522) 6,712

Cumulative amount of actuarial losses recognised 15,911 17,433

Principal actuarial assumptions

Year ended 31/12/12

£’000

Year ended 31/12/11

£’000

Weighted average assumptions used to determine benefit obligations:

Discount rate 4.50% 4.70%Rate of price inflation 2.90% 3.00%Rate of pension increase (post 01/01/1989/pre 01/01/1989)• Compound 5.00% 5.00%• Simple 7.00% 7.00%

Weighted average assumptions used to determine net pension cost:Discount rate 4.70% 5.35%Expected long-term return on plan assets 4.70% 5.60%Rate of compensation increase n/a n/aRate of price inflation 3.00% 3.35%Rate of pension increase – post 01/01/1989 (compound) 5.00% 5.00%Rate of pension increase – pre 01/01/1989 (simple) 7.00% 7.00%

Assumed life expectations on retirement at age 65Male retiring today (member age 65) 23.9 23.8Male retiring in 20 years (member age 45 today) 25.8 25.7Female retiring today (member age 65) 26.2 26.1Female retiring in 20 years (member age 45 today) 28.3 28.2

Plan assets

Year ended 31/12/12

£’000

Year ended 31/12/11

£’000

Percentage of plan assets by asset allocation:Equities 75.5% 75.7%Gilt securities 7.9% 7.0%Corporate bond securities 11.9% 12.1%Insured assets 4.0% 4.4%Cash 0.7% 0.8%Total 100.0% 100.0%Expected return on assets by asset allocation (after deduction of expenses):Total 4.70% 4.70%

Description of basis to determine the overall expected rate of return on assets

To develop the expected long-term rate of return on assets assumption, the Employer considered the current level of expected returns on risk free investments (primarily government bonds), the historical level of the risk premium associated with the other asset classes in which the portfolio is invested and the expectations for future returns of each asset class. The expected return for each asset class was then weighted based on the target asset allocation to develop the expected long-term rate of return on assets assumption for the portfolio (after a deduction for expenses). This resulted in the selection of the 4.7% assumption for the 2013 pension cost and 4.7% for the 2012 pension cost.

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History of experience gains and losses 2012 2011 2010 2009 2008

Benefit obligation at end of year (£’000s) 46,911 45,317 41,212 37,566 32,898Fair value of plan assets at end of year (£’000s) 38,190 34,214 35,498 30,145 24,038Surplus / (deficit) (£’000s) (8,721) (11,103) (5,714) (7,421) (8,860)

Difference between expected and actual return on scheme assets:• Amount (£’000s) (2,984) 3,120 (3,503) (4,937) (8,767)• Percentage of scheme assets (8%) 9% (10%) (16%) (36%)

Experience loss / (gain) on scheme liabilities:• Amount (£’000s) - (1,507) - 1,784 517• Percentage of scheme 0% (3%) 0% 5% 2%

Other required disclosuresContributions expected to be paid to the plan during the annual period beginning after the reporting period (£’000s)

1,350

Nature of Plan The Scheme is a defined benefit pension scheme

Balance sheet reconciliation, excluding any related deferred tax

31/12/2012 £’000s

31/12/2011 £’000s

Net liability as of start of year 11,103 5,714Pension expense recognised in SOFA in the financial year 490 177Amounts recognised in SOFA in the financial year (1,522) 6,712Employer contributions made in the financial year (1,350) (1,500)

Net liability as of end of year 8,721 11,103

Membership statistics (as at Triennial valuation dates)

Census date 31/12/2010 31/12/2007

Active members:• Number - 20• Total annual pensionable pay (£) - 755,221• Average pensionable pay (£) - 37,761• Average age - 52.1• Average past service - 21.1

Vested deferred members:• Number 114 105• Average annual pension (£) 5,844 3,917• Average age 52.5 49.8

Pensioners and beneficiaries:• Number 98 97• Average annual pension (£) 14,402 12,557• Average age 71.5 69.6

Insured Pensioners:• Number 11 14• Average annual pension (£) 10,400 8,400• Average age 81.7 81.1

Total numbers 223 236

Financial statements

1,350

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24. CONTINGENT LIABILITY

The charity has been notified by HM Revenue & Customs that in their opinion they made a mistake in agreeing to and paying a VAT refund during 2009. They have therefore requested that a repayment is made. The charity has a group registration for VAT purposes and the £1.6 million refund was made to its subsidiary RIBA Enterprises Limited. The directors of that company have taken legal advice with tax counsel advising that in his opinion the HMRC position is incorrect, that the refund was validly made and therefore should be retained. Based on that advice a written response was made to the HMRC in June 2010. The company is currently reviewing its advice and gathering further information, following on from a judgement at a recent Tribunal hearing.

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Legal and administrative details

Reference and administrative details

Name of charity Royal Institute of British Architects

Charity number 210566

Registered office and operational address 66 Portland Place London W1B 1AD

Trustees

Angela Brady President

Stephen Hodder President Elect

Anthony Clerici (from 27 September 2012) Vice President - Membership

Paul Davis (until 27 September 2012) Honorary Librarian

Jane Duncan Vice President - Practice & Profession, ex-officio

Jonathan Falkingham RIBA member

Peter Mathias RIBA member

Suzanne McCarthy External non-executive member

Roger Mosey External non-executive member

Peter Oborn Vice President - International

Owen O’Carroll Honorary Treasurer

Stephen Phillips Chair - British Architectural Trust Board

Ruth Reed (until 31 August 2012) Immediate Past President

Oliver Richards Vice President - Education

Wiebke Rietz (until 22 March 2012) Council member

Andrew Salter Honorary Secretary

Peter Udall Non-executive director, RIBA Enterprises Ltd

Pierre Wassenaar (from 22 March 2012) Council member

Ed Williams (from 27 September 2012) Honorary Librarian

Council members as at 23 May 2013

Sean Albuquerque (South East)

Tim Bailey (North East)Alex Bancroft (Student)Russell Bateman (London)Mark Benzie (National)Dagmar Binsted (London)Angela Brady (President)Matt Brook (North West)Peter Caplehorn (National)Sydney Chapman (National)Elspeth Clements (National)Anthony Clerici

(West Midlands)Ian Collins (Yorkshire)Iain Connelly (RIAS President)Nela de Zoysa (Overseas)Jane Duncan (National)James Fischer (Overseas)Emily Fribbance (Student)Brian Godfrey (National)Christopher Hampson

(London)John Hickey (North West)Stephen Hodder

(President Elect)Gavin Hutchison (National)Alan Jones (RSUA President)Ivan Jordan (South West)Mark Kemp (South West)Martin Knight (London)Dominic Kramer

(East Midlands)Jeremy Lander (East)Tony Lloyd (National)Owen Luder (National)Walter Menteth (London)Robert Mitchell (Wessex)Peter Oborn (National)Owen O’Carroll (London)George Oldham (National)Patrick Redmond (West

Midlands)Oliver Richards (National)Wiebke Rietz (Wessex)Andrew Salter (South)Satwinder Samra (Yorkshire)Joan Scott (Scotland South)Alex Scott-Whitby (Associate)Yasmin Shariff (National)Alan Shingler (National)Dale Sinclair (National)Sumita Sinha (London)William Smedley

(East Midlands)Gordon Smith (RIAS North)Karl Smith (South East)Dawson Stelfox (Ulster)Andrew Sutton

(RSAW President)Meryl Townley (London)Elena Tsolakis (National)Peter Udall (North East)Pierre Wassenaar (RSAW)Francesca Weal (East)Sam Webb (National)Warren Whyte (South)Edward Williams

(Honorary Librarian)Nick Willson (National)

Senior staff members as at 23 May 2013

Group Executive

Harry Rich LLB, CCMI Chief Executive

Richard Brindley BSc, DipArch, RIBA Executive Director Membership & Profession

Andy Munro LLB, MA, FCMA Chief Financial Officer

Elizabeth Robertson BA Executive Director Nations & Regions

Richard Waterhouse BArch, RIBA Chief Executive RIBA Enterprises

Gill Webber BA, MCIPR Executive Director Communication & Outreach

The RIBA’s senior staff team is the group executive and:

Lottie Cole MA (Hons) Director of Development

Steven Cross Director of Partnerships RIBA Enterprises

Sally Davies BA, CIPD Head of HR

Cathy Ditchfield BA Director of Membership

Adrian Dobson BArch, MPhil, RIBA Director of Practice

Timothy Edwards MA, FCMA Director of Finance

Wendy Fish BA, PG DipLib Director of Library

David Gloster ADip, MSc, DIC, RIBA Director of Education

William Hawkins BArch, MSc Director of Nations & Regions Operations

Tim Hollins PhD Director of Public Programmes

Belinda Irlam-Mowbray Director of Nations & Regions Innovation

Maxine McKenzie Head of Marketing

Irena Murray MLS, MArch, PhD Director, British Architectural Library and Sir Banister Fletcher Librarian

Anna Scott-Marshall MA Head of External Affairs

Principal Bankers

Barclays CorporateBusiness ServicesLevel 271 Churchill PlaceLondonE14 5HP

Auditors

Sayer VincentChartered accountants and statutory auditors8 Angel GateCity RoadLondonEC1V 2SJ

Sayer Vincent were re-appointed as the group and charity’s auditors during the year and have expressed their willingness to continue in that capacity.

Solicitors

Capsticks Solicitors LLP1 St George’s House EastSt George’s RoadWimbledonLondonSW19 4DR

Investment managers

Schroder & Co Ltd.100 Wood StreetLondonEC2V 7ER

Opposite — McLaren Production Centre, Woking. Foster + Partners. Winner, RIBA Award. Image: Nigel Young.

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The RIBA champions better buildings, communities and the environment through architecture and our members

Public benefit and supporters

Opposite — Brockholes Visitor Centre, Lancashire. Adam Khan Architects. Winner, RIBA Award. Image: Ioana Marinescu.

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Public benefit

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities. In particular, the trustees have considered how planned activities will contribute to the aims and objectives they have set. We provide public benefit in a number of ways – we: • validate UK and overseas

schools of architecture, ensuring a high standard of quality of higher education;

• champion the RIBA Chartered Practice scheme, which encourages universal design excellence and a high level of customer service;

• deliver the RIBA awards programme, which identifies the best newly completed projects, new and renovated, to inspire the profession to raise and maintain the standard of good architecture and a public that is more aware of the benefits of good design;

• run a free telephone Information Line that helps members of the public with matters relating to architecture, architects and construction;

• host RIBApix.com, the online resource with more than 70,000 images from the RIBA collections, available free of charge as an educational resource, and to buy;

• offer free public access to the British Architectural Library, which makes available the premier architectural resource in the UK and one of the leading specialist libraries in the world;

• provide free access to the reading and study rooms at the V&A and at the RIBA’s outstore, together with free online access to one of the world’s premier

collections of architectural art and photographs;

• offer free exhibitions at 66 Portland Place, the V&A and as possible elsewhere, which help the RIBA share its collections and promote a better understanding of architecture among a wider public audience;

• devise and deliver events and talks which highlight issues of public interest about the built environment and stimulate debate within the profession and wider community;

• work with our members to help them devise and deliver festivals, such as Love Architecture, the national celebration which encourages the general public to get involved in architecture-themed events and discover how architecture relates to everyday life;

• support our members going into schools to talk to students about the role of the architect;

• run architecture.com, a free resource about architecture and a gateway to the British Architectural Library catalogue, which ensures that the RIBA collections are more readily accessible to researchers and the general public;

• partner with other like-minded organisations, such as The Observer and Grand Designs Live, to extend the reach of our work with the public to target new audiences;

• support our branches through the Local Initiative Fund so that they can create exhibitions and events that engage the public in their area; and

• stand up for the consumer through our campaigns such as HomeWise, which calls on the government to improve the quality and quantity of new homes.

Public benefit and supporters

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Above — Students from Horinger Middle School, Bury St Edmunds, take part in one of RIBA East’s Architect in Schools events, led by Tom Stebbing, JSA architects. The events were part-funded by Suffolk County Council. Image: Tom Stebbing.Opposite bottom — Over 600 attended the So Create A Difference exhibition and brainstorming in Tunbridge Wells, devised by two local architects, RIBA West Kent Branch and the regional office, to get residents thinking about revisualising forgotten places in the town centre. Image: Chris Cassidy.Left — RIBA Stirling Prize exhibition and People of Manchester’s winner poll in the RIBA Architruck outside Manchester Town Hall. Image: Jonty Wilde.Below — Over 150,000 visitors to the 2012 National Eisteddfod were able to view the RSAW Architecture Pavilion, inspired by the Welsh landscape. Coombs Jones: Architects + Makers.

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Supporters

The RIBA is very grateful for the support it receives from sponsors and private donors, the public sector, trusts and foundations, from members and colleagues nationally and overseas, and from those companies and individuals who wish to remain anonymous. Without such generosity, the RIBA could not continue to run its many outstanding projects and programmes. We are particularly grateful to our corporate supporters who have maintained their long-term commitment during this difficult economic period.

Individuals and organisations who have supported the RIBA through Donations, Grants and Sponsorship over £1,000 in 2012.

AedasAKW MedicareArgent Estates LimitedArts CouncilBLP InsuranceBRE TrustBuro HappoldCABECantifix LtdCapita SymondsClaire IngleDesign Circle Design CouncilEast Lindsey District CouncilEMAP LimitedEnglish HeritageEric Parry ArchitectsET Clay Products LtdForbo Flooring Forticrete LtdHeritage Lottery FundHewlett PackardIbstock Brick LtdIcon Display LtdIOM3John McAslan + PartnersLeeds City CouncilLondon Festival of ArchitectureLondon Pleasure GardensMargot AugerNeptune DevelopmentsNorthern Architecture AssociationOliver Richards, ORMSOrdnance SurveyOwen Luder, PPRIBAPear Communications Phil Holden, Pascall + Watson Architects LtdPlanning Group WalesSimon HoufeSkidmore Owings and Merrill LLPSmartglass InternationalSolarcube LtdSteve McGuckin, Turner & TownsendTaylor and Francis Group LtdTechnology Strategy BoardThe Art FundThe Bloxham Charitable Trust

The Crown EstateThe Greater London AuthorityThe Marco Goldschmied FoundationThe Rooflight CompanyThe Southbank CentreThe Worshipful Company of Chartered ArchitectsUK Trade and InvestmentUrban Design London V&A Purchase Grant FundVale CouncilVirtual Newcastle Gateshead West Yorkshire Society of ArchitectsWhitehead Building Services Wienerberger Ltd

And all those who wish to remain anonymous.

Individuals and organisations who have supported the RIBA through Gifts in Kind in 2012.

Adrian GaleAnne Kriken Mann Antony CleminsonArnolfiniBruce MartinCapita SymondsChristopher GibbsClaire IngleElizabeth MoreFrank WoodsGMW ArchitectsHerman HertzbergerJeremy LeverJoan M. ThorntonJohn HarrisJohn WarrenLegoMark/GiustiMartin Charles Paul SmithShui On Land (China)Simon HoufeSomerset HouseSusan WrightThe British CouncilThe Conran Shop

And all those who wish to remain anonymous.

Public benefit and supporters

Opposite — Turner Contemporary, Margate. David Chipperfield Architects. Winner, RIBA Award. Image: Hufton+Crow.

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RIBA EastThe Studio, High GreenGreat ShelfordCambridge CB22 5EGT +44(0)1223 566285F +44(0)1223 505142riba.east@riba.org

RIBA East MidlandsThe Faculty of Art, Architecture & DesignUniversity of LincolnBrayford PoolLincoln LN6 7TST +44(0)1522 837480F +44 (0)1522 837484riba.eastmidlands@riba.org

RIBA London66 Portland PlaceLondon W1B 1ADT +44(0)20 7307 5352F +44(0)20 7307 3788riba.london@riba.org

RIBA North EastSchool of the Built EnvironmentNorthumbria UniversityEllison Building, Ellison PlaceNewcastle-upon-Tyne NE1 8STT +44(0)191 261 7441F +44(0)191 261 1472riba.northeast@riba.org

RIBA North WestUnit 101, The Tea Factory82 Wood StreetLiverpool L1 4DQT +44(0)151 703 0107F +44(0)151 703 0108riba.northwest@riba.org

RIBA South / South EastRooms GO7 & GO8Building LO11University of ReadingLondon RoadReading RG1 5AQT +44(0)118 987 4900F +44(0)118 931 4493riba.south@riba.org

RIBA South EastT +44(0)1892 515715

RIBA South West and WessexUnit 4.8PaintworksBath RoadBristol BS4 3EHT +44(0)844 800 2767riba.southwest@riba.org

RIBA West MidlandsBirmingham and Midland InstituteMargaret StreetBirmingham B3 3SPT +44(0)121 233 2321riba.westmidlands@riba.org

RIBA YorkshireThe Studio32 The CallsLeeds LS2 7EWT +44(0)113 389 9870riba.yorkshire@riba.org

Royal Society ofArchitects in Wales (RSAW)4 Cathedral RoadCardiff CF11 9LJT +44(0)29 2022 8987F +44(0)29 2023 0030rsaw@riba.org

RIBA CompetitionsThe Studio32 The CallsLeeds LS2 7EWT +44(0)113 203 1490riba.competitions@riba.org

And in partnership with

Royal Incorporation of Architectsin Scotland (RIAS)Royal Society of Ulster Architects (RSUA)

RIBA Enterprises15 Bonhill StreetLondon EC2P 2EAT +44(0)20 7496 8300F +44(0)20 7374 8500admin@ribaenterprises.comribaenterprises.com

NBSThe Old Post OfficeSt Nicholas StreetNewcastle Upon Tyne NE1 1RHT +44(0)845 456 9594F +44(0)191 232 5714info@thenbs.comthenbs.com

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